Artificial Intelligence Technology Applications and Energy Utilization Efficiency: Empirical Evidence from China

Hanjin Xie, Jiahui Cheng (), Xi Tan and Jun Li
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Hanjin Xie: School of Economics and Management, East China Jiaotong University, Nanchang 330013, China
Jiahui Cheng: School of Economics and Management, East China Jiaotong University, Nanchang 330013, China
Xi Tan: School of Economics and Management, Wuhan University, Wuhan 430060, China
Jun Li: School of Public Management, South China Agricultural University, Guangzhou 510642, China

Sustainability, 2025, vol. 17, issue 14, 1-26

Abstract: Although artificial intelligence (AI) serves as a core driver of the new round of technological transformation, its crucial role in improving energy utilization efficiency has not yet received sufficient attention. This analysis empirically explores how the application of AI technology influences energy utilization efficiency using panel data from Chinese cities over the period from 2008 to 2021. The following are the primary conclusions: (1) AI technology applications are able to enhance energy utilization efficiency, and the outcomes remain valid after extensive reliability tests have been conducted; (2) the investigation of the mechanism demonstrates that AI technology applications can optimize energy utilization efficiency through technological and scale effects; (3) environmental regulation and digital infrastructure serve as positive moderators of the impact of AI technology applications on energy utilization efficiency; and (4) a heterogeneity analysis shows that the positive impact of AI technology applications on energy utilization efficiency is more significant within resource-dependent cities, cities with non-traditional industrial foundations, and those with a strong emphasis on environmental protection. The application of AI technology significantly enhances energy efficiency, which is a finding that remains robust across multiple reliability tests.

Keywords: AI technology applications; energy utilization efficiency; technological effect; scale effect; environmental regulation; digital infrastructure (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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