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Does artificial intelligence promote green technology innovation in the energy industry?

Author

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  • Li, Cong
  • Zhang, Yue
  • Liu, Xihua
  • Sun, Jiawen

Abstract

The lack of incentives for energy corporations to engage in green technology innovation (GTI) is a problem which has long plagued economic growth and sustainable development. The widespread integration of artificial intelligence (AI) innovation in the domain of environmental protection has given new impetus to GTI, sparking interest into its role in green transformation. This study investigates the impact of AI on GTI in Chinese energy corporations to explore whether it is diverting resources from GTI, or overcoming the lack of GTI incentives. The results indicate that AI indeed contributes to GTI, and that it does so by enhancing human capital and alleviating financial pressure. Additionally, this effect is more pronounced in the central and eastern regions, areas with stricter environmental regulations, and the midstream and downstream of the energy industry. These findings offer specific insights to simulate GTI, helping balance economic growth with sustainable development.

Suggested Citation

  • Li, Cong & Zhang, Yue & Liu, Xihua & Sun, Jiawen, 2025. "Does artificial intelligence promote green technology innovation in the energy industry?," Energy Economics, Elsevier, vol. 144(C).
    • Handle: RePEc:eee:eneeco:v:144:y:2025:i:c:s0140988325002269
    DOI: 10.1016/j.eneco.2025.108402
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