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Artificial Intelligence and Green Innovation in Automotive Manufacturing Sector: The Mediating Roles of Digital Transformation and Total Factor Productivity

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  • Yutan Wu

    (School of Finance and Taxation, Inner Mongolia University of Finance and Economics, Hohhot 010010, China)

  • Chong Duan

    (School of Economics, Inner Mongolia University of Finance and Economics, Hohhot 010010, China)

  • Lingge Kong

    (School of Finance and Taxation, Inner Mongolia University of Finance and Economics, Hohhot 010010, China)

  • Lili Xu

    (School of Economics and Management, Inner Mongolia Agricultural University, Hohhot 010011, China)

  • Xiumin Jia

    (College of Science, Inner Mongolia University of Science and Technology, Baotou 014010, China)

Abstract

This study examines the impact of artificial intelligence (AI) technology adoption on green innovation using a sample of Chinese A-share listed automotive manufacturing firms from 2015 to 2023. We further investigate the mediating roles of digital transformation and total factor productivity (TFP). AI technology adoption and digital transformation are measured through textual analysis, and the empirical analysis is conducted using fixed-effects models. The results indicate that AI technology adoption significantly enhances green innovation among automotive manufacturing firms. This conclusion remains robust after addressing potential endogeneity concerns and conducting a series of robustness tests. Mediation analysis reveals that improvements in digital transformation and TFP serve as important channels through which AI technology adoption promotes corporate green innovation. Further heterogeneity analysis shows that the positive effect of AI technology adoption on green innovation is significantly weaker among firms located in eastern China than among those in non-eastern regions. These findings provide new insights for managers seeking to improve corporate green innovation performance through AI technology adoption.

Suggested Citation

  • Yutan Wu & Chong Duan & Lingge Kong & Lili Xu & Xiumin Jia, 2026. "Artificial Intelligence and Green Innovation in Automotive Manufacturing Sector: The Mediating Roles of Digital Transformation and Total Factor Productivity," Sustainability, MDPI, vol. 18(10), pages 1-23, May.
    • Handle: RePEc:gam:jsusta:v:18:y:2026:i:10:p:4753-:d:1939459
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