Artificial Intelligence and Carbon Emissions of Manufacturing Enterprises in China

We examine the relationship between artificial intelligence application and carbon emissions of Chinese manufacturing enterprises. We find that artificial intelligence can suppress the carbon emission intensity of manufacturing enterprises. A one-unit increase in AI leads to an average decline of 0.009 units in carbon emission intensity. Specifically, artificial intelligence boosts corporate green innovation, total factor productivity and analyst supervision among manufacturing enterprises, thereby curbing their corporate carbon emission intensity. Heterogeneity analysis indicates that the inhibitory effect of artificial intelligence is more significant in state-owned enterprises, polluting enterprises, and enterprises with financing constraints. Overall, we offer policy implications for developing countries to balance industrialization progress and climate responsibilities.