DOI: 10.3390/su18168565 ISSN: 2071-1050

The Nonlinear Relationship Between AI Innovation and Carbon Emission Intensity: Evidence from Chinese Provinces

Shaoqin Shi, Sanmang Wu

China’s pursuit of its dual-carbon targets amid rapid artificial intelligence (AI) development raises an important question: do the environmental implications of AI innovation change as regional innovation advances? Using a balanced panel of 30 Chinese provinces from 2011 to 2024, this study measured patent-based AI innovation intensity using applications identified through a strict AI patent classification. Linear and quadratic models with province and year fixed effects were estimated, and the Lind–Mehlum test was used to assess the shape of the relationship within the observed range. The preferred specification indicates an inverted-U-shaped association: carbon emission intensity initially increases with patent-based AI innovation but declines beyond an interior turning point. The negative quadratic coefficient remains stable when the emissions data source, patent classification, sample period, treatment of outliers, and timing of the AI terms are varied. Supplementary Bartik and copula-control analyses preserve the negative curvature, although their identification limitations preclude a definitive causal interpretation. A Kaya-based exact decomposition shows that the estimated curvature is concentrated in energy intensity rather than the carbonization factor. Human capital strengthens the estimated concavity, while the clearest regional contrast is observed between central and eastern China, with the strongest curvature in the central provinces. These findings suggest that greater AI patenting does not automatically reduce emissions. Its environmental implications depend on the stage of regional innovation and its interaction with energy efficiency and absorptive capacity. Policies promoting AI innovation should therefore be coordinated with cleaner energy supply, efficiency improvements, and human capital investment. More broadly, the study provides a stage-sensitive basis for evaluating the sustainability implications of patent-based AI innovation through measurable changes in carbon emission intensity.

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