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Does artificial intelligence suppress firms' greenwashing behavior? Evidence from robot adoption in China

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  • Bai, Caiquan
  • Yao, Di
  • Xue, Qihang

Abstract

Determining approaches to effectively suppress firms' greenwashing practices has become a popular topic in academic and professional circles. Given that artificial intelligence (AI) applications in production are mainly achieved using industrial robots, we investigate the impact of AI applications on firms' greenwashing behavior using industrial robot data from the International Federation of Robotics and data from Chinese listed firms from 2011 to 2019. The results demonstrate that AI applications can significantly suppress firms' greenwashing practices. We also identify three key mechanisms through which AI achieves this effect by reducing costs and increasing profits, improving productivity, and alleviating information asymmetry. Furthermore, the inhibitory effect of AI applications on firms' greenwashing behavior is more significant for firms with insufficient cash flow, firms without bank relationships, and those located in regions with good institutional environments and high human capital levels. This study provides a new perspective for suppressing firms' greenwashing practices by promoting AI applications, filling gaps in the existing literature.

Suggested Citation

  • Bai, Caiquan & Yao, Di & Xue, Qihang, 2025. "Does artificial intelligence suppress firms' greenwashing behavior? Evidence from robot adoption in China," Energy Economics, Elsevier, vol. 142(C).
    • Handle: RePEc:eee:eneeco:v:142:y:2025:i:c:s0140988324008776
    DOI: 10.1016/j.eneco.2024.108168
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    More about this item

    Keywords

    Artificial intelligence; Greenwashing behavior; Robots replacing people; Production efficiency; Information asymmetry;
    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
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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