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Does artificial intelligence impact corporate ESG performance? Evidence from a quasi-natural experiment in China

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  • Wang, Yang
  • Wang, Yongheng
  • Yang, Pengyu

Abstract

This study examines the impact of China's national-level New Generation Artificial Intelligence Innovation Development Pilot Zones (AIIDPZ) on corporate ESG performance. Using firm-level data from 2010 to 2022, we find that the establishment of AIIDPZs significantly enhances corporate ESG outcomes, and this effect remains robust across a series of validation tests. Mechanism analysis reveals that AIIDPZs foster ESG improvements primarily by promoting green innovation, strengthening managerial capabilities, and reducing both internal and external communication costs. Additional heterogeneity analysis shows that the positive effects are more pronounced for firms led by CEOs with financial or academic backgrounds and for those located in regions with more advanced infrastructure. This study suggests that expanding the coverage of AI innovation pilot zones, strategically deploying digital infrastructure, and improving digital regulatory systems can jointly establish a systemic policy pathway to foster sustainable development.

Suggested Citation

  • Wang, Yang & Wang, Yongheng & Yang, Pengyu, 2025. "Does artificial intelligence impact corporate ESG performance? Evidence from a quasi-natural experiment in China," Energy Economics, Elsevier, vol. 151(C).
    • Handle: RePEc:eee:eneeco:v:151:y:2025:i:c:s014098832500790x
    DOI: 10.1016/j.eneco.2025.108963
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