IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v18y2025i5p1102-d1598531.html
   My bibliography  Save this article

Artificial Intelligence and Carbon Emissions: Mediating Role of Energy Efficiency, Factor Market Allocation and Industrial Structure

Author

Listed:
  • Jun Liu

    (School of Digital Economics and Management, Wuxi University, Wuxi 214105, China
    Faculty of Humanities and Social Sciences, City University of Macau, Macao SAR, China)

  • Hengxu Shen

    (School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Junwei Chen

    (School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Xin Jiang

    (China Mobile Communications Group, Jiangsu Company Limited Taizhou Branch, Taizhou 212200, China)

  • Abdul Waheed Siyal

    (School of Digital Economics and Management, Wuxi University, Wuxi 214105, China)

Abstract

Artificial intelligence (AI) plays an important role in promoting energy transformation and achieving global green and low-carbon goals. Based on the panel data of 285 prefecture-level cities in China from 2011 to 2022, this paper empirically examines the impact of AI on carbon emission (CE) and its internal mechanism. It is found that the impact of AI on CE in general shows an “inverted U-shaped” relationship, which is first promoted and then suppressed, and this result still holds after a series of robustness tests. The mechanism test shows that AI affects CE in three main ways: improving energy efficiency, optimizing factor market allocation, and industrial structure. The heterogeneity results show that the “inverted U-shape” relationship of AI on CE is significant in resource cities insignificant in non-resource cities, significant in low-carbon pilot cities, and insignificant in non-low-carbon pilot cities, significant in areas with a high level of industrialization, and insignificant in areas with a low level of industrialization. This study provides valuable insights for the application of AI and the formulation of energy conservation and emission reduction policies.

Suggested Citation

  • Jun Liu & Hengxu Shen & Junwei Chen & Xin Jiang & Abdul Waheed Siyal, 2025. "Artificial Intelligence and Carbon Emissions: Mediating Role of Energy Efficiency, Factor Market Allocation and Industrial Structure," Energies, MDPI, vol. 18(5), pages 1-18, February.
  • Handle: RePEc:gam:jeners:v:18:y:2025:i:5:p:1102-:d:1598531
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/18/5/1102/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1996-1073/18/5/1102/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Song, Malin & Pan, Heting & Shen, Zhiyang & Tamayo-Verleene, Kristine, 2024. "Assessing the influence of artificial intelligence on the energy efficiency for sustainable ecological products value," Energy Economics, Elsevier, vol. 131(C).
    2. Brannlund, Runar & Ghalwash, Tarek & Nordstrom, Jonas, 2007. "Increased energy efficiency and the rebound effect: Effects on consumption and emissions," Energy Economics, Elsevier, vol. 29(1), pages 1-17, January.
    3. Jiahui Tang & Wan Wang & Wangwang Ding, 2024. "Research into the Path and Mechanism by Which Intelligent Manufacturing Promotes Carbon Emission Reductions," Energies, MDPI, vol. 17(16), pages 1-18, August.
    4. Fisher-Vanden, Karen & Jefferson, Gary H. & Jingkui, Ma & Jianyi, Xu, 2006. "Technology development and energy productivity in China," Energy Economics, Elsevier, vol. 28(5-6), pages 690-705, November.
    5. Liu, Liang & Yang, Kun & Fujii, Hidemichi & Liu, Jun, 2021. "Artificial intelligence and energy intensity in China’s industrial sector: Effect and transmission channel," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 276-293.
    6. Lynn H. Kaack & Priya L. Donti & Emma Strubell & George Kamiya & Felix Creutzig & David Rolnick, 2022. "Aligning artificial intelligence with climate change mitigation," Nature Climate Change, Nature, vol. 12(6), pages 518-527, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Yong & Zhao, Wenhao & Ma, Xuejiao, 2024. "The spatial spillover impact of artificial intelligence on energy efficiency: Empirical evidence from 278 Chinese cities," Energy, Elsevier, vol. 312(C).
    2. Thomas, Brinda A. & Azevedo, Inês L., 2013. "Estimating direct and indirect rebound effects for U.S. households with input–output analysis. Part 2: Simulation," Ecological Economics, Elsevier, vol. 86(C), pages 188-198.
    3. Zheng, Yingmei & Qi, Jianhong & Chen, Xiaoliang, 2011. "The effect of increasing exports on industrial energy intensity in China," Energy Policy, Elsevier, vol. 39(5), pages 2688-2698, May.
    4. Suresh Malodia & Alka Singh Bhatt, 2019. "Why Should I Switch Off: Understanding the Barriers to Sustainable Consumption?," Vision, , vol. 23(2), pages 134-143, June.
    5. Lin, Boqiang & Xu, Chongchong, 2024. "The effects of industrial robots on firm energy intensity: From the perspective of technological innovation and electrification," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    6. Chitnis, Mona & Sorrell, Steve & Druckman, Angela & Firth, Steven K. & Jackson, Tim, 2014. "Who rebounds most? Estimating direct and indirect rebound effects for different UK socioeconomic groups," Ecological Economics, Elsevier, vol. 106(C), pages 12-32.
    7. Zhou, Xiaoyan & Zhang, Jie & Li, Junpeng, 2013. "Industrial structural transformation and carbon dioxide emissions in China," Energy Policy, Elsevier, vol. 57(C), pages 43-51.
    8. Caiyue Ouyang & Xin Wang & Jiacai Xiong, 2019. "Do Controlling Shareholders Who Pledged Their Shares Affect Sustainable Development? An Investigation Based on the Perspective of Corporate Innovation," Sustainability, MDPI, vol. 11(10), pages 1-17, May.
    9. Meyabadi, A. Fattahi & Deihimi, M.H., 2017. "A review of demand-side management: Reconsidering theoretical framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 367-379.
    10. Hübler, Michael, 2011. "Technology diffusion under contraction and convergence: A CGE analysis of China," Energy Economics, Elsevier, vol. 33(1), pages 131-142, January.
    11. Sharma, Rajesh & Shahbaz, Muhammad & Sinha, Avik & Vo, Xuan Vinh, 2021. "Examining the temporal impact of stock market development on carbon intensity: Evidence from South Asian countries," MPRA Paper 108925, University Library of Munich, Germany, revised 2021.
    12. Haiqian Ke & Wenyi Yang & Xiaoyang Liu & Fei Fan, 2020. "Does Innovation Efficiency Suppress the Ecological Footprint? Empirical Evidence from 280 Chinese Cities," IJERPH, MDPI, vol. 17(18), pages 1-23, September.
    13. Xiangyi Li & Qing Wang & Ying Tang, 2024. "The Impact of Artificial Intelligence Development on Urban Energy Efficiency—Based on the Perspective of Smart City Policy," Sustainability, MDPI, vol. 16(8), pages 1-22, April.
    14. Lin, Boqiang & Liu, Xia, 2013. "Reform of refined oil product pricing mechanism and energy rebound effect for passenger transportation in China," Energy Policy, Elsevier, vol. 57(C), pages 329-337.
    15. Chitnis, Mona & Sorrell, Steve, 2015. "Living up to expectations: Estimating direct and indirect rebound effects for UK households," Energy Economics, Elsevier, vol. 52(S1), pages 100-116.
    16. Ouyang, Jinlong & Long, Enshen & Hokao, Kazunori, 2010. "Rebound effect in Chinese household energy efficiency and solution for mitigating it," Energy, Elsevier, vol. 35(12), pages 5269-5276.
    17. Zhao, Qian & Wang, Lu & Stan, Sebastian-Emanuel & Mirza, Nawazish, 2024. "Can artificial intelligence help accelerate the transition to renewable energy?," Energy Economics, Elsevier, vol. 134(C).
    18. Puertas, Rosa & Guaita-Martinez, José M. & Marti, Luisa, 2023. "Analysis of the impact of university policies on society's environmental perception," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    19. Lin, Boqiang & Li, Xuehui, 2011. "The effect of carbon tax on per capita CO2 emissions," Energy Policy, Elsevier, vol. 39(9), pages 5137-5146, September.
    20. Bonev, Petyo & Glachant, Matthieu & Söderberg, Magnus, 2022. "Implicit yardstick competition between heating monopolies in urban areas: Theory and evidence from Sweden," Energy Economics, Elsevier, vol. 109(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:18:y:2025:i:5:p:1102-:d:1598531. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.