Artificial intelligence and green development: Evidence from China

Artificial intelligence plays a crucial role in addressing environmental challenges. Grounded in the theory of innovation diffusion, this study employs panel data from 286 prefecture-level cities in China over the period from 2012 to 2022 to investigate the impact and underlying mechanisms of artificial intelligence on green development. The findings reveal that artificial intelligence and green development exhibit a statistically significant U-shaped relationship. Green technological innovation serves as the primary mechanism through which artificial intelligence influences green development. Furthermore, the positive effect of artificial intelligence on green development is more pronounced in the eastern, northeastern, and coastal regions of China. Additionally, artificial intelligence has significantly contributed to economic growth, demonstrating a notable 'reduction in emissions and enhancement of efficiency'.