How can AI application affect the enterprise carbon reduction performance?

Area of Science:

• Environmental Science
• Business Management
• Technology and Innovation

Background:

• Enterprises are key to achieving global carbon neutrality goals through low-carbon transformation.
• Climate governance increasingly relies on corporate strategies for sustainable development.
• Digital technologies, like AI, are emerging as critical tools for environmental performance.

Purpose of the Study:

• To investigate the impact of artificial intelligence (AI) application on enterprise carbon reduction performance (CRP).
• To identify the mechanisms through which AI influences corporate environmental responsibility.
• To explore variations in AI's effectiveness across different firm types and regulatory environments.

Main Methods:

• Utilized a panel dataset of Chinese A-share listed firms from 2009 to 2022.
• Employed econometric analysis to assess the relationship between AI adoption and CRP.
• Conducted mechanism and heterogeneity analyses to understand causal pathways and contextual factors.

Main Results:

• AI application demonstrates a significant positive effect on enterprise CRP.
• Key mechanisms include promoting green innovation, improving environmental information disclosure, and alleviating financing constraints.
• The positive impact is stronger for state-owned enterprises, high-polluting firms, technology-intensive industries, and firms in stricter regulatory regions.

Conclusions:

• AI adoption is a vital strategy for enhancing corporate carbon reduction performance.
• Digital transformation, powered by AI, supports sustainable corporate development and climate governance.
• Policy guidance should align technological innovation with climate goals to foster environmental sustainability.