The Multiple Impacts of Artificial Intelligence on Carbon Neutrality: Evidence From China

Achieving carbon neutrality (CN) has been a consensus worldwide in the current era of intensifying climate change. artificial intelligence (AI), as one of the most promising digital technologies, have achieved amazing development and application during the past years, and also bespoke great potential in reshaping social production and living styles profoundly. Against this backdrop, the role of AI development in achieving CN has arisen the attention of the academia. This study evaluates AI development and CN performance in China using panel data from 30 provinces between 2011 and 2021. Employing the panel Tobit, panel quantile, threshold effect, and spatial Durbin models, it finds that: (1) AI development is characterized a remarkable positive influence on CN and conductive in achieving the CN goals. (2) The positive effect of AI development on CN exhibits nonlinear characteristics, with a stronger impact at lower CN levels. (3) The influence of AI development on CN grows as green fiscal expenditure increases. (4) A spatial spillover effect exists in the impact of AI on CN. Therefore, AI development is suggested to be encouraged to promote the realization of CN goals, especially in developing countries.