From algorithms to green growth: Can artificial intelligence drive enterprise energy transformation?

Meiying Huang, Quan Li and Bowen Li

Economic Analysis and Policy, 2025, vol. 85, issue C, 1846-1866

Abstract: As global priorities shift towards sustainability and climate change mitigation, the impact of artificial intelligence (AI) as an emerging technological force on enterprise energy transformation (EET) remains insufficiently explored. This study treats the “Smart Manufacturing Pilot Policy” as a quasi-natural experiment, uses data from A-share listed companies between 2007 and 2022, and applies the standard Difference-in-Differences model to examine the impact of AI on EET. The findings reveal that AI adoption significantly enhances EET, with more pronounced effects observed in state-owned enterprises, firms in eastern and coastal regions, and those with advanced digital transformation. Four key mechanisms are identified: fostering green technology innovation, enhancing human capital structure, improving environmental information disclosure, and reducing financing constraints. Overall, this study provides novel insights into the economic impact of AI and offers a framework for sustainable, energy-efficient development that can be applied to countries with similar economic structures and development trajectories.

Keywords: Artificial intelligence; Enterprise energy transformation; Smart manufacturing pilot policy (search for similar items in EconPapers)
JEL-codes: O38 O44 Q55 Q56 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:85:y:2025:i:c:p:1846-1866

DOI: 10.1016/j.eap.2025.02.029

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