Green innovation perspective: Artificial intelligence and corporate green development

Qilu Liu, Shanshan Du and Min Li

International Review of Economics & Finance, 2025, vol. 102, issue C

Abstract: In the context of growing global environmental pressures, corporate green transformation has become an essential path to achieving sustainable development goals. This study uses a quasi-natural experiment based on the establishment of China's National AI Innovation and Application Pilot Zones and employs a multi-period difference-in-differences model to investigate the causal impact of AI on corporate green development using panel data of A-share listed firms from 2011 to 2023. The results show that AI significantly promotes green development at the firm level, and this finding is robust across multiple tests. Mechanism analysis further reveals that AI drives green transformation through two key channels: human capital upgrading and productivity enhancement. Heterogeneity analysis indicates that the positive effect of AI is more pronounced in state-owned enterprises, high-tech industries, and large-scale firms. This study contributes to the literature by providing micro-level evidence on the relationship between AI and sustainability and offers practical insights for policy design that aims to integrate technological progress with green transformation.

Keywords: Artificial intelligence; Green innovation; Quasi-natural experiment (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:102:y:2025:i:c:s1059056025005088

DOI: 10.1016/j.iref.2025.104345

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