The Impact of Artificial Intelligence Development on Urban Energy Efficiency—Based on the Perspective of Smart City Policy

Xiangyi Li, Qing Wang and Ying Tang ()
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Xiangyi Li: Hubei Recycling Economy Development Research Center, Hubei University of Technology, Wuhan 430068, China
Qing Wang: Hubei Recycling Economy Development Research Center, Hubei University of Technology, Wuhan 430068, China
Ying Tang: School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China

Sustainability, 2024, vol. 16, issue 8, 1-22

Abstract: China’s economy is stepping into a new stage of high-quality development. The shift not only marks the optimization and upgrading of the economic structure, but also reflects the in-depth implementation of the concept of sustainable development. In this context, the development of AI technology is playing an important role in balancing economic growth and ecological protection with its unique advantages. This paper empirically studied the impact of AI development on urban energy efficiency by constructing panel data for 282 prefecture-level cities from 2006 to 2019 and then using the super-efficiency SBM model based on non-expected outputs to evaluate the urban energy efficiency indicators of prefecture-level cities. It was discovered that the development of AI had a key influence on increasing urban energy efficiency and the optimization of the energy structure by speeding up green technology innovation and digital economy development, which in turn improved urban energy efficiency. In terms of heterogeneity analysis, AI development had a greater impact on urban energy efficiency in the eastern region, which has higher levels of human capital, financial independence, and government intervention. This study combined the smart city pilot policy with a multi-period DID model, based on the treatment of endogeneity issues, in order to perform a parallel trend test and investigate further the effects of policy implementation on the advancement of AI in the context of improving urban energy efficiency. Accordingly, to achieve green and sustainable urban development, the relevant government departments should increase funding for AI research and development, pay attention to the introduction and cultivation of professionals, establish a platform for international exchanges and cooperation between AI and energy management, and continue to advocate for the pilot development of smart cities to increase urban energy efficiency.

Keywords: AI; energy efficiency; smart city policy; DID; sustainable development (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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