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Will artificial intelligence make energy cleaner? Evidence of nonlinearity

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  • Lee, Chien-Chiang
  • Yan, Jingyang

Abstract

Energy plays a vital part in stimulating economic progress, and the shift towards a cleaner energy system is highly significant for ensuring the sustainable development of the economy. China's energy structure urgently needs to be transitioned. The fast advancement and implementation of artificial intelligence (AI) has provided a new and important tool for promoting the transition of energy structure. So, what is the relationship between the application of artificial intelligence and the transition of the energy structure? This research introduces artificial intelligence into the energy sector, focusing on the relationship between artificial intelligence and energy transition. Since nonlinear models are better able to study the complex effects and phase differences of artificial intelligence. Using China's provincial panel data spanning from 2006 to 2019, this study employs nonlinear modeling to explore the stage differences in the process of AI in facilitating energy structure transformation. This paper derives the following findings based on empirical research. First, there is a U-shaped relationship between artificial intelligence and the transition of energy structure. Specifically, before the inflection point, the initial application of artificial intelligence, artificial intelligence may adversely impact energy transition. When the inflection point is passed, AI will help facilitate the energy transition. Second, the U-shaped relationship between AI and energy transition is more pronounced in coastal and non-resource-based regions. Third, energy intensity, government investment in science and technology, and informatization will moderate the U-shaped relationship between artificial intelligence and energy transition, changing the steepness of the original U-shaped relationship and even reversing it. Hence, it is imperative to effectively utilize the technological benefits of artificial intelligence through the development patterns and distinctive features of different regions, thereby facilitating the smooth transition of the energy structure.

Suggested Citation

  • Lee, Chien-Chiang & Yan, Jingyang, 2024. "Will artificial intelligence make energy cleaner? Evidence of nonlinearity," Applied Energy, Elsevier, vol. 363(C).
    • Handle: RePEc:eee:appene:v:363:y:2024:i:c:s0306261924004641
    DOI: 10.1016/j.apenergy.2024.123081
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