IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwwuw/wuwp370.html
   My bibliography  Save this paper

Climate change and automation: the emission effects of robot adoption

Author

Listed:
  • Ana Abeliansky

    (Austrian National Bank (OeNB))

  • Klaus Prettner

    (Department of Economics, Vienna University of Economics and Business)

  • Ernesto Rodríguez Crespo

    (Department of Economic Structure and Development Economics, Universidad Autónoma de Madrid)

Abstract

What are the environmental impacts of the increasing use of automation technologies? To answer this question, we propose a model of production in the age of automation that incorporates emission externalities. We derive a threshold condition subject to which the use of industrial robots affects emissions. This model leads to three testable predictions, i) the use of industrial robots causes higher emissions on average, ii) with increasing efficiency of industrial robots, the effect becomes weaker and could turn negative, and iii) in countries in which electricity is predominantly produced using (clean) renewable energy, industrial robot use has the potential of decreasing emissions. Empirically, we find support for the theoretical hypotheses implying that the effect of automation on emissions is non-linear or moderated by other variables.

Suggested Citation

  • Ana Abeliansky & Klaus Prettner & Ernesto Rodríguez Crespo, 2024. "Climate change and automation: the emission effects of robot adoption," Department of Economics Working Papers wuwp370, Vienna University of Economics and Business, Department of Economics.
    • Handle: RePEc:wiw:wiwwuw:wuwp370
    Note: PDF Document
    as

    Download full text from publisher

    File URL: https://research.wu.ac.at/ws/portalfiles/portal/68239989/WP370.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Daron Acemoglu & David Autor & Jonathon Hazell & Pascual Restrepo, 2022. "Artificial Intelligence and Jobs: Evidence from Online Vacancies," Journal of Labor Economics, University of Chicago Press, vol. 40(S1), pages 293-340.
    2. Sotiris Blanas & Gino Gancia & Sang Yoon (Tim) Lee, 2019. "Who is afraid of machines?," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 34(100), pages 627-690.
    3. Pascual Restrepo, 2023. "Automation: Theory, Evidence, and Outlook," NBER Working Papers 31910, National Bureau of Economic Research, Inc.
    4. Katja Mann & Lukas Püttmann, 2023. "Benign Effects of Automation: New Evidence from Patent Texts," The Review of Economics and Statistics, MIT Press, vol. 105(3), pages 562-579, May.
    5. Wolfgang Dauth & Sebastian Findeisen & Jens Suedekum & Nicole Woessner, 2021. "The Adjustment of Labor Markets to Robots [“Skills, Tasks and Technologies: Implications for Employment and Earnings]," Journal of the European Economic Association, European Economic Association, vol. 19(6), pages 3104-3153.
    6. Uwe Thuemmel, 2023. "Optimal Taxation of Robots," Journal of the European Economic Association, European Economic Association, vol. 21(3), pages 1154-1190.
    7. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    8. Yanwei Lyu & You Wu & Wenqiang Wang & Jinning Zhang, 2024. "The Impact Of Covid-19 Pandemic On Carbon Emissions: Empirical Evidence From China," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 27(1), pages 133-150, March.
    9. Terry Gregory & Anna Salomons & Ulrich Zierahn, 2022. "Racing With or Against the Machine? Evidence on the Role of Trade in Europe," Journal of the European Economic Association, European Economic Association, vol. 20(2), pages 869-906.
    10. Krenz, Astrid & Prettner, Klaus & Strulik, Holger, 2021. "Robots, reshoring, and the lot of low-skilled workers," European Economic Review, Elsevier, vol. 136(C).
    11. Daron Acemoglu & Pascual Restrepo, 2020. "Robots and Jobs: Evidence from US Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 128(6), pages 2188-2244.
    12. Daron Acemoglu & Pascual Restrepo, 2018. "The Race between Man and Machine: Implications of Technology for Growth, Factor Shares, and Employment," American Economic Review, American Economic Association, vol. 108(6), pages 1488-1542, June.
    13. Aller, Carlos & Ductor, Lorenzo & Grechyna, Daryna, 2021. "Robust determinants of CO2 emissions," Energy Economics, Elsevier, vol. 96(C).
    14. Junhao Zhong & Yilin Zhong & Minghui Han & Tianjian Yang & Qinghua Zhang, 2024. "The impact of AI on carbon emissions: evidence from 66 countries," Applied Economics, Taylor & Francis Journals, vol. 56(25), pages 2975-2989, May.
    15. Gan, Jiawu & Liu, Lihua & Qiao, Gang & Zhang, Qin, 2023. "The role of robot adoption in green innovation: Evidence from China," Economic Modelling, Elsevier, vol. 119(C).
    16. Jiafeng Chen & Jonathan Roth, 2024. "Logs with Zeros? Some Problems and Solutions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(2), pages 891-936.
    17. Dario Cords & Klaus Prettner, 2022. "Technological unemployment revisited: automation in a search and matching framework [The future of work: meeting the global challenges of demographic change and automation]," Oxford Economic Papers, Oxford University Press, vol. 74(1), pages 115-135.
    18. Bruno, Giovanni S.F., 2005. "Approximating the bias of the LSDV estimator for dynamic unbalanced panel data models," Economics Letters, Elsevier, vol. 87(3), pages 361-366, June.
    19. Prettner, Klaus, 2023. "Stagnant wages in the face of rising labor productivity: The potential role of industrial robots," Finance Research Letters, Elsevier, vol. 58(PD).
    20. Huang, Geng & He, Ling-Yun & Lin, Xi, 2022. "Robot adoption and energy performance: Evidence from Chinese industrial firms," Energy Economics, Elsevier, vol. 107(C).
    21. Marc F. Bellemare & Casey J. Wichman, 2020. "Elasticities and the Inverse Hyperbolic Sine Transformation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(1), pages 50-61, February.
    22. David H. Autor, 2015. "Why Are There Still So Many Jobs? The History and Future of Workplace Automation," Journal of Economic Perspectives, American Economic Association, vol. 29(3), pages 3-30, Summer.
    23. Li Deng & Zhangqi Zhong, 2024. "The impact of digital infrastructure on carbon emissions: evidence from 284 cities in China," Economic Change and Restructuring, Springer, vol. 57(5), pages 1-38, October.
    24. Hashai, Niron & Almor, Tamar, 2008. "R&D intensity, value appropriation and integration patterns within organizational boundaries," Research Policy, Elsevier, vol. 37(6-7), pages 1022-1034, July.
    25. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998. "Computing Inequality: Have Computers Changed the Labor Market?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(4), pages 1169-1213.
    26. Chen, Yang & Cheng, Liang & Lee, Chien-Chiang, 2022. "How does the use of industrial robots affect the ecological footprint? International evidence," Ecological Economics, Elsevier, vol. 198(C).
    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. Hideki Nakamura & Joseph Zeira, 2024. "Automation and unemployment: help is on the way," Journal of Economic Growth, Springer, vol. 29(2), pages 215-250, June.
    2. David E. Bloom & Klaus Prettner & Jamel Saadaoui & Mario Veruete, 2023. "Artificial intelligence and the skill premium," Papers 2311.09255, arXiv.org.
    3. Jasmine Mondolo, 2022. "The composite link between technological change and employment: A survey of the literature," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1027-1068, September.
    4. Ekaterina Prytkova & Fabien Petit & Deyu Li & Sugat Chaturvedi & Tommaso Ciarli, 2024. "The Employment Impact of Emerging Digital Technologies," CEPEO Working Paper Series 24-01, UCL Centre for Education Policy and Equalising Opportunities, revised Feb 2024.
    5. Fierro, Luca Eduardo & Caiani, Alessandro & Russo, Alberto, 2022. "Automation, Job Polarisation, and Structural Change," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 499-535.
    6. Albanesi, Stefania & Dias da Silva, Antonio & Jimeno, Juan Francisco & Lamo, Ana & Wabitsch, Alena, 2023. "New Technologies and Jobs in Europe," CEPR Discussion Papers 18220, C.E.P.R. Discussion Papers.
    7. Abeliansky, Ana Lucia & Prettner, Klaus, 2023. "Automation and population growth: Theory and cross-country evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 208(C), pages 345-358.
    8. Yoon, Chungeun, 2023. "Technology adoption and jobs: The effects of self-service kiosks in restaurants on labor outcomes," Technology in Society, Elsevier, vol. 74(C).
    9. Andreas Baur & Lisandra Flach & Isabella Gourevich & Florian Unger, 2023. "North-South Trade: The Impact of Robotization," CESifo Working Paper Series 10865, CESifo.
    10. Hémous, David & Dechezleprêtre, Antoine & Olsen, Morten & Zanella, carlo, 2019. "Automating Labor: Evidence from Firm-level Patent Data," CEPR Discussion Papers 14249, C.E.P.R. Discussion Papers.
    11. de Vries, Gaaitzen J. & Gentile, Elisabetta & Miroudot, Sébastien & Wacker, Konstantin M., 2020. "The rise of robots and the fall of routine jobs," Labour Economics, Elsevier, vol. 66(C).
    12. David Autor & Caroline Chin & Anna Salomons & Bryan Seegmiller, 2024. "New Frontiers: The Origins and Content of New Work, 1940–2018," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(3), pages 1399-1465.
    13. Dario Guarascio & Jelena Reljic & Roman Stollinger, 2023. "Artificial Intelligence and Employment: A Look into the Crystal Ball," LEM Papers Series 2023/34, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    14. Cheng, Can & Luo, Jiayu & Zhu, Chun & Zhang, Shangfeng, 2024. "Artificial intelligence and the skill premium: A numerical analysis of theoretical models," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    15. Prettner, Klaus, 2023. "Stagnant wages in the face of rising labor productivity: The potential role of industrial robots," Finance Research Letters, Elsevier, vol. 58(PD).
    16. Zhang, Xinchun & Sun, Murong & Liu, Jianxu & Xu, Aijia, 2024. "The nexus between industrial robot and employment in China: The effects of technology substitution and technology creation," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    17. Falck, Oliver & Heimisch-Roecker, Alexandra & Wiederhold, Simon, 2021. "Returns to ICT skills," Research Policy, Elsevier, vol. 50(7).
    18. Jurkat, Anne & Klump, Rainer & Schneider, Florian, 2023. "Robots and Wages: A Meta-Analysis," EconStor Preprints 274156, ZBW - Leibniz Information Centre for Economics.
    19. Gathmann, Christina & Kagerl, Christian & Pohlan, Laura & Roth, Duncan, 2024. "The pandemic push: Digital technologies and workforce adjustments," Labour Economics, Elsevier, vol. 89(C).
    20. Borsato, Andrea & Lorentz, André, 2023. "The Kaldor–Verdoorn law at the age of robots and AI," Research Policy, Elsevier, vol. 52(10).

    More about this item

    Keywords

    Automation; Robots; Emissions; Climate Change;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:wiw:wiwwuw:wuwp370. 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: Department of Economics (email available below). General contact details of provider: http://www.wu.ac.at/economics/en .

    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.