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Have Industrial Robots Improved Pollution Reduction? A Theoretical Approach and Empirical Analysis

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  • Huzhou Zhu
  • Bin Sang
  • Chunyuan Zhang
  • Lin Guo

Abstract

To investigate whether industrial robots have improved the ecological environment, this study integrated the adoption of robot technology and pollution abatement into Melitz's heterogeneous firm model. This showed that using robots in production can lower firms' pollution intensity by increasing their abatement investments, and this reduction effect is greater for higher polluting firms and those subject to weaker local environmental regulations. These theoretical expectations were then confirmed through a series of empirical investigations based on Bartik instrument regressions, with multiple robustness checks as well as heterogeneity and mechanism analyses. This paper adds to the literature on the relationships between automation technologies and green transformation. It shows that in the pursuit of economic growth and environmental protection, it is necessary for policymakers to shift from pollution control to technical support for traditional manufacturing firms.

Suggested Citation

  • Huzhou Zhu & Bin Sang & Chunyuan Zhang & Lin Guo, 2023. "Have Industrial Robots Improved Pollution Reduction? A Theoretical Approach and Empirical Analysis," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(4), pages 153-172, July.
    • Handle: RePEc:bla:chinae:v:31:y:2023:i:4:p:153-172
    DOI: 10.1111/cwe.12495
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    References listed on IDEAS

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