Can artificial intelligence technology reduce carbon emissions? A global perspective

Qingfeng Cao, Chuenyu Chi and Junhui Shan

Energy Economics, 2025, vol. 143, issue C

Abstract: Whether Artificial Intelligence (AI) technology can contribute to carbon reduction remains an issue that requires further research. We measure the level of AI technology by the number of AI patents filed in each country, and use panel data from 30 countries spanning 2005 to 2020 to examine the impact of AI technology on carbon emissions. Our findings indicate that AI technology significantly reduces carbon emission levels. This conclusion remains robust after endogeneity and various robustness tests. Mechanism tests reveal that AI technology improves energy efficiency by reducing per capita carbon emissions and the energy intensity of primary energy. Additionally, AI technology reduces carbon emissions by inducing skill-biased and routine-biased technological change. When government regulation is more flexible, the carbon-reducing effect of AI technology is stronger. Further analysis indicates that AI technology has a significant impact on reducing carbon emissions in countries that are closer to the leading country in AI technology, have lower income level, and are highly dependent on traditional fossil fuels. Moreover, the carbon reduction effects of AI technology applied to energy management are more significant. Thus, promoting the innovation and diffusion of AI technology on a global scale plays a crucial role in advancing global carbon reduction targets.

Keywords: Artificial intelligence; Carbon emissions; Energy efficiency; Biased technological change; Government regulation (search for similar items in EconPapers)
JEL-codes: O33 Q48 Q54 Q55 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:143:y:2025:i:c:s0140988325001082

DOI: 10.1016/j.eneco.2025.108285

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