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Artificial Intelligence and Carbon Emission Embodied in Manufacturing Production: Effect and Impact Mechanism

Year: 2026

Type: article

Abstract: At present, the deep integration of artificial intelligence and manufacturing has become an important engine for global green development. Based on data from 54 countries worldwide, this paper finds that AI has a significant inhibitory effect on carbon emissions embodied in manufacturing production. Mechanism analysis indicates that this abatement effect is realized by improving production technology levels, promoting the optimization and upgrading of industrial structure, and strengthening industrial agglomeration. Heterogeneity tests show that while these decarbonization benefits are particularly pronounced in high-income economies and nations with advanced AI adoption, the impact varies considerably across individual countries and different industries. Finally, the paper finds that “Industry 4.0” policies enhance the carbon reduction potential of AI, with the effect reaching its peak in the fourth lag period. Therefore, only by fully leveraging the technological dividends of AI and enhancing the transmission effect of production technology, industrial structure optimization, and industrial agglomeration can the potential of AI in manufacturing carbon reduction be better released.

Source: Polish Journal of Environmental Studies

DOI: 10.15244/pjoes/217903

Authors: Zilin Liu, Chunlei Zhao

Institutions: Central University of Finance and Economics, Yantai Institute of Technology

Language: English

Topic: Energy, Environment, Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Climate action, Responsible consumption and production, Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W7162039727