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Smarter and Sustainable Development: Evaluating the Impact of Artificial Intelligence on Energy Conservation and Emission Reduction

Author

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  • Siyu Ren

    (School of International Business, Shanghai University of International Business and Economics, Shanghai, China)

  • Wenchao Bu

    (Center for Transnationals' Studies of Nankai University, Nankai University, Tianjin, China)

Abstract

Improving energy conservation and emission reduction (ECER) efficiency is a virtuous cycle of economic development and environmental protection, promoting countries around the world towards sustainable development. As a strategic technology leading a new round of technological revolution and industrial transformation, the large-scale application of artificial intelligence (AI) is driving the transformation of manufacturing production methods, which is increasingly essential for improving the effectiveness of environmental governance. This study aims to analyze the impact of AI technology on ECER in the manufacturing industry, as well as the specific impact paths and heterogeneity. We contribute to previous literature by measuring ECER of Chinese manufacturing sector using the EBM model. The mediation effect model is used to analyze the impact mechanism between AI technology and ECER. The results indicate that AI promotes the ECER efficiency in the manufacturing sector. The positive effects are attributed to the development of energy consumption structure and technological innovation. The impact of AI on ECER exhibits an evident heterogeneous effect across industries with different pollution intensity, R&D intensity and labor intensity, and ownership dominant industry. Additionally, higher levels of environmental regulation lead to an increase in the positive effects of robot promotion on ECER. The research conclusions provide important reference for understanding the relationship between AI technology and ECER, and contribute a new way to promote environmental governance and carbon neutrality.

Suggested Citation

  • Siyu Ren & Wenchao Bu, 2024. "Smarter and Sustainable Development: Evaluating the Impact of Artificial Intelligence on Energy Conservation and Emission Reduction," Journal of Information Economics, Anser Press, vol. 2(3), pages 49-69, September.
    • Handle: RePEc:bba:j00008:v:2:y:2024:i:3:p:49-69:d:385
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    References listed on IDEAS

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    1. Daron Acemoglu & Pascual Restrepo, 2018. "The Race between Man and Machine: Implications of Technology for Growth, Factor Shares, and Employment," American Economic Review, American Economic Association, vol. 108(6), pages 1488-1542, June.
    2. Daron Acemoglu & Claire Lelarge & Pascual Restrepo, 2020. "Competing with Robots: Firm-Level Evidence from France," AEA Papers and Proceedings, American Economic Association, vol. 110, pages 383-388, May.
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