Building efficiency: How the national AI innovation pilot zones enhance green energy utilization? Evidence from China.

Abstract

Improving energy efficiency is a pivotal strategy for achieving energy conservation, emission reduction, and green development goals, while also serving as a critical indicator for evaluating high-quality economic growth and sustainable development. Artificial intelligence (AI) is widely regarded as a transformative force, offering new opportunities to advance green and sustainable development objectives. This study leverages the phased implementation of China's National Artificial Intelligence Innovation and Development Pilot Zone policy at the city level in 2019, using panel data from 287 cities spanning 2009 to 2022. A multi-period difference-in-differences model is constructed to examine the impact and mechanisms of AI pilot zone development on energy efficiency. The findings reveal the following: (1) The establishment of next-generation AI innovation and development pilot zones significantly enhances energy efficiency in pilot cities. (2) Optimizing energy consumption structures and fostering green technological innovation are key channels through which the AI pilot policy improves energy efficiency. (3) The effect of AI pilot zone development on energy efficiency is more pronounced in cities with stringent environmental regulations, higher levels of economic development (e.g., eastern regions), and robust human capital and digital infrastructure. (4) Spatial Durbin model analysis indicates that the construction of AI innovation pilot zones not only boosts energy efficiency in pilot cities but also exerts a significant positive spillover effect on surrounding cities. This study provides fresh evidence on the role of AI in promoting green and sustainable development amid the digital transformation, offering policy insights to deepen AI applications in support of a clean, low-carbon transition.