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Green Intelligence: The AI content of green technologies

Author

Listed:
  • Gianluca Biggi
  • Martina Iori
  • Julia Mazzei
  • Andrea Mina

Abstract

This paper investigates the contribution of Artificial Intelligence (AI) to environmental innovation. Leveraging a novel dataset of USPTO patent applications from 1980 to 2019, it explores the domain of Green Intelligence (GI), defined as the application of AI algorithms to green technologies. Our analyses reveal an expanding landscape where AI is indeed used as a general purpose technology to address the challenge of sustainability and acts as a catalyst for green innovation. We highlight transportation, energy, and control methods as key applications of GI innovation. We then examine the impact of inventions by using measures and econometric tests suitable to establish 1) how AI and green inventions differ from other technologies and 2) what specifically distinguishes GI technologies in terms of quality and value. Results show that AI and green technologies have a greater impact on follow-on inventions and display greater originality and generality. GI inventions stand out even further in these dimensions. However, when we examine the market response to these inventions, we find positive results only for AI, indicating a mismatch between the technological vis-Ã -vis market potential of green and GI technologies, arguably due to greater uncertainty in their risk-return profiles.

Suggested Citation

  • Gianluca Biggi & Martina Iori & Julia Mazzei & Andrea Mina, 2024. "Green Intelligence: The AI content of green technologies," LEM Papers Series 2024/23, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    • Handle: RePEc:ssa:lemwps:2024/23
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    Cited by:

    1. Nelli, Linnea & Virgillito, Maria Enrica & Vivarelli, Marco, 2025. "A Twin Transition or a Policy Flagship? Emergent Constellations and Dominant Blocks in Green and Digital Technologies," IZA Discussion Papers 17779, IZA Network @ LISER.
    2. 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).
    3. Stefano Basilico & Alberto Marzucchi & Sandro Montresor, 2024. "Combining digital and green technologies in regions: how to close the gap with respect to the frontier?," Papers in Evolutionary Economic Geography (PEEG) 2440, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2024.
    4. Pelin Demirel & Ester Martinez-Ros & Francesco Quatraro, 2025. "Innovation for the green transition: challenges and future perspectives," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 15(3), pages 631-645, September.

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    Keywords

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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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