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Does artificial intelligence reduce corporate energy consumption? New evidence from China

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  • FU, Yunyun
  • SHEN, Yongchang
  • SONG, Malin
  • WANG, Weiyu

Abstract

Artificial intelligence is playing a significant role in addressing the energy crisis. This study selected data from manufacturing companies listed on China's A-share market from 2011 to 2022 and calculated the total energy consumption for the first time. The data include the usage of coal, natural gas, gasoline, diesel and water consumption, electricity usage, and centralized heating. The data were then matched and merged with robot usage data from the International Federation of Robotics to empirically study the impact and mechanism of artificial intelligence on energy consumption levels. Our findings reveal that energy consumption decreases by 0.20 % with a one-unit increase in artificial intelligence applications by a corporation, indicating artificial intelligence can significantly reduce energy consumption. The mechanisms by which artificial intelligence affects energy consumption include technological innovation and digital transformation. Additionally, a heterogeneity analysis revealed that applying artificial intelligence in state-owned enterprises, high-tech companies, and non-heavy-pollution industries can further reduce energy consumption. Our study also provides important practical implications for formulating and optimizing global energy policies to achieve sustainable development goals.

Suggested Citation

  • FU, Yunyun & SHEN, Yongchang & SONG, Malin & WANG, Weiyu, 2024. "Does artificial intelligence reduce corporate energy consumption? New evidence from China," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 548-561.
    • Handle: RePEc:eee:ecanpo:v:83:y:2024:i:c:p:548-561
    DOI: 10.1016/j.eap.2024.07.005
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