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Robot adoption and corporate pollution emissions: Evidence from China

Author

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  • Xu, Rui
  • Zhang, Hao
  • Han, Minghui
  • Yang, Leo Yang

Abstract

This study examines whether and how industrial robot adoption affects corporate pollution emissions. Using a sample of 163,301 firm-year observations from the Chinese industrial enterprises for the period 2004–2014, we find that firm's robot adoption is positively related to pollution emissions reduction. Further mechanism tests show that the adoption of robots in production can improve a firm's productivity and alleviate a firm's financial constraint, thereby increasing the firm's pollution emissions reduction. In addition, we find that the above-mentioned effect of robot adoption on a firm's pollution emissions reduction is more pronounced for firms headquartered in regions with strong environmental regulations, firms that are high efficiency of pollution treatment and high technology-intensive, firms that have gone public and state-owned enterprises. Altogether, this study provides the first micro evidence on the relationship between robot adoption and corporate pollution emissions, providing significant implications for the world's sustainable development.

Suggested Citation

  • Xu, Rui & Zhang, Hao & Han, Minghui & Yang, Leo Yang, 2025. "Robot adoption and corporate pollution emissions: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:pacfin:v:90:y:2025:i:c:s0927538x24003998
    DOI: 10.1016/j.pacfin.2024.102647
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    Cited by:

    1. Xu, Rui & Xie, Junqi & Pang, Shumei, 2026. "Industrial robot adoption and geographical customer distribution strategy: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 96(C).
    2. Chao Zhang & Peilin Wu & Weijun Lu, 2025. "Do social security contributions affect firms’ pollution discharges? Evidence from collection reforms in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(12), pages 31015-31042, December.
    3. Fang Chen & Wenge Liu, 2025. "Does Industrial Robot Adoption Reduce Pollution Emission? Evidence from China," Sustainability, MDPI, vol. 17(13), pages 1-19, July.
    4. Xu, Chongchong & Du, Anna Min & Lin, Boqiang, 2025. "Robot adoption and corporate supply chain efficiency: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 94(C).
    5. Jiang, Ping & Ma, Yunxiao, 2025. "How AI reduces pollutant emissions: The dual mechanisms of productivity enhancement and financing constraint alleviation," Pacific-Basin Finance Journal, Elsevier, vol. 94(C).

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