The impact of artificial intelligence on pollution emission intensity-evidence from China.

Abstract

Artificial intelligence (AI) is a crucial component of sustainable economic development and an indicator of the next wave of technological progress. This study examines the effects and mechanisms of AI on the intensity of pollution emissions, using China as an example. Theoretical analysis demonstrates that the scale expansion effect and the technological innovation effect of AI can reduce the intensity of pollution emissions. In the meantime, AI can have a positive structural influence on reducing the intensity of pollution emissions through the upgrading of industrial structures. Therefore, we use panel data for 30 Chinese provinces from 2006 to 2019 to test the effect of AI on pollution emission intensity using a fixed effects model, employ explanatory variable substitution, endogenous analysis, regression after tailing, and eliminate related policy interference for robustness analysis. The results indicate that AI can significantly decrease the intensity of pollution emissions, with a 6.63% reduction for every 10% increase in AI utilization. We use the mediating effect model to conclude that AI can reduce the intensity of pollution emissions via the rationalization of industrial structure and advanced industrial structure, with the rationalization of industrial structure being the main mechanism. The examination of heterogeneity revealed that the implementation of AI in technology-intensive industries is an effective method for reducing the intensity of pollution emissions and that the positive impact of AI on the intensity of pollution emissions is more pronounced in the western region.