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Can artificial intelligence improve carbon emission efficiency by promoting industrial intelligence? Evidence from Chinese provincial panel data

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  • Yang, Lei
  • He, Yiqing
  • Pan, YiJin

Abstract

With the in-depth advancement of the new round of technological revolution and industrial transformation, artificial intelligence (AI) plays a pivotal role in addressing energy conservation and emission reduction, and empowers the achievement of the "carbon peaking and carbon neutrality" goals. After using the SBM-GML index method to calculate the carbon emission efficiency of each province in China, this paper discusses the impact of artificial intelligence on provincial carbon emission efficiency and its action path. The research findings reveal that: (1) AI significantly improves the carbon emission efficiency, and after the robustness test and endogeneity test, the conclusion is still valid; (2) Industrial intelligence is an effective path for artificial intelligence to affect regional carbon emission efficiency; (3) The promotion effect of AI on carbon emission efficiency is more obvious in eastern and western provinces of China. These results contribute to our understanding of AI's role in improving carbon emission efficiency and provide empirical evidence for governments and enterprises to better leverage AI under the new development paradigm.

Suggested Citation

  • Yang, Lei & He, Yiqing & Pan, YiJin, 2025. "Can artificial intelligence improve carbon emission efficiency by promoting industrial intelligence? Evidence from Chinese provincial panel data," Economic Analysis and Policy, Elsevier, vol. 88(C), pages 1983-1994.
    • Handle: RePEc:eee:ecanpo:v:88:y:2025:i:c:p:1983-1994
    DOI: 10.1016/j.eap.2025.11.004
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