Does AI Application Matter in Promoting Carbon Productivity? Fresh Evidence from 30 Provinces in China

Shan Feng and Shuguang Liu ()
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Shan Feng: School of Economics, Ocean University of China, Qingdao 266100, China
Shuguang Liu: School of Economics, Ocean University of China, Qingdao 266100, China

Sustainability, 2023, vol. 15, issue 23, 1-19

Abstract: Artificial intelligence (AI) is an important force leading to a new round of scientific and technological revolution, as well as promoting the realization of the dual carbon goals of China. Determining how to take advantage of AI during the green industrial transformation and propelling participation in global value chains are of great importance to China. In this paper, we carefully study the influencing mechanism. The Batik Variable Method is then applied to measure robot penetration in the industries across 30 provinces in China from 2010 to 2019. Furthermore, intermediate and threshold effect models are constructed using three crucial variables. The estimates reveal critical findings: firstly, the application of AI has a significant positive effect on carbon productivity, and this conclusion is still valid after a series of robustness tests. Secondly, a heterogeneity test shows that, compared with the central and western regions, AI application in the east has a stronger and more significant effect on carbon productivity over time. Thirdly, the optimization of human capital and improvement of innovation level both play partial mediating roles in this process, and manufacturing agglomeration has a nonlinear adjustment effect on the positive relationship between AI application and carbon productivity. The conclusions of this study provide references for further optimizing and expanding the application scenarios of AI, thereby contributing to high-quality economic development in China.

Keywords: AI; carbon productivity; intermediate effect; nonlinear regulation effect; threshold effect model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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