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The impact of intelligent manufacturing on industrial pollution: firm-level evidence from China

Author

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  • Wen Wang
  • Yingxue Sun
  • Zhichen Huang

Abstract

This paper examines the effects of intelligent manufacturing on pollution emissions in China’s manufacturing sector. Using firm-level tax administrative survey data and a staggered difference-in-differences design, we exploit the spatial and temporal variation in robot park establishment as a quasi-natural experiment. We show that intelligent manufacturing contributes to the pollution emissions reduction. This effect operates through two primary mechanisms: technological progress effect, which improves total factor and labour productivity, and capital savings effect, which optimize energy consumption and reduce the intensity of fixed capital. Furthermore, the emission-reducing effects are more pronounced for large-scale, high-tech, and strategically emerging firms, with these effects further magnified in regions characterized by concentrated industrial clusters. These results provide critical insights into the complex trade-offs between achieving environmental objectives and maintaining industrial competitiveness in developing economies.

Suggested Citation

  • Wen Wang & Yingxue Sun & Zhichen Huang, 2026. "The impact of intelligent manufacturing on industrial pollution: firm-level evidence from China," Applied Economics, Taylor & Francis Journals, vol. 58(32), pages 6399-6412, July.
    • Handle: RePEc:taf:applec:v:58:y:2026:i:32:p:6399-6412
    DOI: 10.1080/00036846.2025.2519956
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