Role of artificial intelligence on green economic development: Joint determinates of natural resources and green total factor productivity

ABSTRACT

The energy consumption structure is now shifting from using fossil fuels to using renewable energy. Thus it is crucial to research if decreasing energy use can genuinely boost green total factor productivity (GTFP) and how to reconcile the link between reducing energy consumption and GTFP using various technical approaches. This study proposes the two-way influence of Artificial Intelligence (AI) and natural resources market on GTFP. It comprehensively evaluates the effects of AI on green economic development using the instance of China and a pertinent mathematical model. We found that the impacts of AI on carbon intensity vary between industries and developmental phases. Compared to the 11th Five-Year Plan, AI significantly reduced carbon intensity during the 12th. Compared to capital-intensive businesses, labor- and technology-intensive industries likely have a more significant drop in carbon intensity due to AI and natural resources market.