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The effect of artificial intelligence on energy transition: Evidence from China

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  • Gao, Xiangming
  • Ji, Xinliang
  • Wang, Rong
  • Yu, Jian

Abstract

Artificial intelligence (AI) is an important next-generation information technology and a key driver of energy transition. Using panel data from 282 cities from 2006 to 2019, in this study, we examine the influence of AI on energy transition in China. We measure AI using exposure to industrial robots and find that AI can significantly accelerate the energy transition process. Improvements in energy efficiency and research and development innovation are the two mechanisms through which AI promotes energy transition. The results of heterogeneity analysis indicate that AI's impact on energy transition is more pronounced in cities with a high transition potential, specifically those with a low level of electrification, weak environmental regulations, greater fiscal constraints, and those located in the central and western regions of China. These findings provide valuable insights for the application of AI in the field of energy transition and policy guidance for China and other developing countries.

Suggested Citation

  • Gao, Xiangming & Ji, Xinliang & Wang, Rong & Yu, Jian, 2025. "The effect of artificial intelligence on energy transition: Evidence from China," Energy Economics, Elsevier, vol. 147(C).
    • Handle: RePEc:eee:eneeco:v:147:y:2025:i:c:s0140988325003925
    DOI: 10.1016/j.eneco.2025.108568
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