Impact of AI applications on corporate green innovation

Kang Xi and Xuefeng Shao

International Review of Economics & Finance, 2025, vol. 99, issue C

Abstract: In the context of China's efforts to achieve carbon peaking and carbon neutrality goals, this study examined the impact of artificial intelligence (AI) applications on corporate green innovation (CGI) and the mechanism underlying such impact. Based on the panel data of 5209 Chinese listed firms from 2003 to 2022, this study empirically analyzed the relationship between AI applications and CGI using text analysis and econometric methods. The results revealed that AI applications significantly positively affect CGI. Additionally, media attention positively moderates the relationship between AI applications and CGI efficiency. Heterogeneity analysis further revealed the significantly different roles of various factors (e.g., region, industry, and nature of corporate ownership) in the relationship between AI applications and CGI. Our findings provide empirical support for the role of AI applications in achieving China's carbon peaking and carbon neutrality goals, and are of both theoretical and practical significance to promoting green transformation in China's economic development.

Keywords: AI; Green innovation; Media attention (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:99:y:2025:i:c:s1059056025001704

DOI: 10.1016/j.iref.2025.104007

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