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Title How Does Artificial Intelligence Affect Manufacturing Firms' Energy Intensity?
ID_Doc 29377
Authors Li H.; Lu Z.; Zhang Z.; Tanasescu C.
Year 2025
Published Energy Economics, 141
DOI http://dx.doi.org/10.1016/j.eneco.2024.108109
Abstract This paper investigates the effects of artificial intelligence (AI) on manufacturing firms' energy intensity (EI) by examining the substitutive role of AI in factor inputs. We assess how AI advancements and the assimilation can improve productivity and enhance energy efficiency, potentially reducing EI. Using a dataset of Chinese listed manufacturing companies from 2006 to 2020, this study quantifies AI adoption through text analysis of firms' annual reports. The findings indicate that AI applications can significantly improve production efficiency and energy efficiency, thereby significantly diminishing firms' EI. This trend is more pronounced for private sector companies and for firms in cities not included in the smart city pilot project. The study concludes with policy recommendations to advance energy conservation and emissions reduction. © 2024 The Authors
Author Keywords Artificial intelligence (AI); Energy efficiency; Energy intensity (EI); Production efficiency


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