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Robot adoption and energy performance: Evidence from Chinese industrial firms

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  • Huang, Geng
  • He, Ling-Yun
  • Lin, Xi

Abstract

With the continuous development of technology, intelligent production, which brings huge changes to social welfare, has gradually become the main trend in the economic development of many countries. Does intelligent production featuring robot adoption help improve the environment and solve energy problems? In this study, we first construct a theoretical model at the micro-level to analyze how robot adoption affects a firm’s energy efficiency. Then, based on Propensity Score Matching-Difference in Differences (PSM-DID) method, we use the data of China’s firms from 2001 to 2012 to identify the causal relationship between robot adoption and firm’s energy efficiency. We find that the adoption of robots in production can significantly increase firms’ energy efficiency. Further mechanism tests show that the increase of productivity is an important factor through which adopting robots can improve a firm’s energy efficiency. In addition, the increase in the firm’s energy efficiency is mainly due to the increase in the firm’s output rather than the decrease in total energy consumption. Altogether, this study provides the first micro evidence on the relationship between robot adoption and energy efficiency, providing significant implications for the world’s sustainable development.

Suggested Citation

  • Huang, Geng & He, Ling-Yun & Lin, Xi, 2022. "Robot adoption and energy performance: Evidence from Chinese industrial firms," Energy Economics, Elsevier, vol. 107(C).
    • Handle: RePEc:eee:eneeco:v:107:y:2022:i:c:s0140988322000214
    DOI: 10.1016/j.eneco.2022.105837
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    Cited by:

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    3. Axenbeck, Janna & Berner, Anne & Kneib, Thomas, 2022. "What drives the relationship between digitalization and industrial energy demand? Exploring firm-level heterogeneity," ZEW Discussion Papers 22-059, ZEW - Leibniz Centre for European Economic Research.
    4. Xiaoyi Li & Qibo Tian, 2023. "How Does Usage of Robot Affect Corporate Carbon Emissions?—Evidence from China’s Manufacturing Sector," Sustainability, MDPI, vol. 15(2), pages 1-16, January.
    5. Huang, Keqi & Liu, Qiren & Tang, Chengjian, 2023. "Which firms benefit from robot adoption? Evidence from China," Journal of Asian Economics, Elsevier, vol. 86(C).
    6. He, Ling-Yun & Huang, Geng, 2023. "Can importing improve the energy efficiency? Theory and evidence from Chinese industrial firms," International Review of Economics & Finance, Elsevier, vol. 83(C), pages 451-469.
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    8. Ke-Liang Wang & Ting-Ting Sun & Ru-Yu Xu, 2023. "The impact of artificial intelligence on total factor productivity: empirical evidence from China’s manufacturing enterprises," Economic Change and Restructuring, Springer, vol. 56(2), pages 1113-1146, April.
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    More about this item

    Keywords

    Intelligent production; Robot adoption; Energy efficiency; Energy performance;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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