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Published on: May 1, 2021
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How does artificial intelligence affect green economic growth?-Evidence from China
Peiya Zhao1, Yu Gao2, Xue Sun1
1School of Economics and Management, Northwest University, Xi'an 710127,PR China.
The Science of the Total Environment
|April 24, 2022
Summary
Artificial intelligence (AI) impacts green total factor productivity (GTFP) with a U-shaped effect. AI can boost GTFP in resource-rich regions but faces challenges in intensive industries.
Area of Science:
- Environmental Economics
- Technological Innovation
- Sustainable Development
Background:
- Artificial intelligence (AI) is a key driver of technological advancement and green economic growth.
- Understanding the multifaceted impact of AI on environmental productivity is crucial for sustainable development.
- China's economic landscape provides a relevant case study for analyzing AI's role in green growth.
Purpose of the Study:
- To investigate the dual impact of AI on green total factor productivity (GTFP) in China.
- To analyze how AI influences overall green economic growth.
- To explore the mechanisms through which AI affects GTFP, distinguishing between technological progress and efficiency improvements.
Main Methods:
- Construction of a relevant mathematical model to assess AI's impact.
- Application of a nonlinear dynamic panel regression model to estimate the relationship between AI and GTFP.
- Analysis of regional and industry heterogeneity to understand differential effects.
Main Results:
- AI exhibits a significant "U-shaped" effect on GTFP.
- AI adoption in resource-rich areas enhances GTFP and mitigates the "resource curse".
- A "productivity paradox" is observed in resource-intensive and labor-intensive industries due to low current intelligence levels.
Conclusions:
- AI's influence on GTFP is complex and context-dependent, showing a U-shaped trajectory.
- Targeted AI implementation in specific regions and industries is necessary to maximize green economic benefits.
- Further research into overcoming the "productivity paradox" in certain sectors is warranted for comprehensive green growth.
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