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Is artificial intelligence a curse or a blessing for enterprise energy intensity? Evidence from China

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  • Zhang, Weike
  • Zeng, Ming
Abstract
Artificial intelligence (AI) has experienced significant momentum worldwide in recent years. However, its rapid growth has raised concerns about energy shortages due to its high energy consumption, despite its potential to conserve energy in various ways. This study seeks to investigate the impact of AI on enterprise energy intensity (EI) by analyzing data from Chinese manufacturing listed enterprises during the period of 2011–2019. The findings reveal that the widespread adoption of AI can significantly reduce enterprise EI. Specifically, incorporating an additional unit of industrial robots per hundred workers leads to an approximate 2.5% reduction in enterprise EI. These conclusions remain robust after performing various tests. Moreover, the reduction effect of AI on enterprise EI is more pronounced in enterprises with high energy-dependence, non-labor-intensive enterprises, and state-owned enterprises (SOEs). Mechanism analysis further indicates that AI achieves enterprise EI reduction by facilitating technological innovation and digital transformation. Additionally, the study highlights the influence of business cycles, industrial concentration, and environmental regulations on the impact of AI on reducing enterprise EI. These findings not only alleviate excessive concerns regarding AI's energy consumption but also emphasize the necessity for governments to formulate corresponding policies aimed at reducing enterprise EI.

Suggested Citation

  • Zhang, Weike & Zeng, Ming, 2024. "Is artificial intelligence a curse or a blessing for enterprise energy intensity? Evidence from China," Energy Economics, Elsevier, vol. 134(C).
    • Handle: RePEc:eee:eneeco:v:134:y:2024:i:c:s014098832400269x
    DOI: 10.1016/j.eneco.2024.107561
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