Decoding the AI carbon reduction code: Improving corporate carbon performance from the perspective of industry chain spillovers

Artificial intelligence (AI) technologies serve as a critical instrument in advancing China's dual climate objectives of carbon emissions peaking and carbon neutrality. This study investigates the mechanisms through which AI adoption influences corporate carbon performance (CCP), employing a panel dataset of Chinese listed firms spanning the 2007-2021 period. The findings reveal that AI significantly enhances CCP, with this enhancement being particularly pronounced among non-state-owned enterprises, firms with fewer financing constraints, capital-intensive enterprises, and enterprises operating in non-polluting industries. Mechanism analysis suggests that the primary channels through which AI promotes CCP include enhancing production efficiency, improving the flexibility of supply and demand matching, and fostering green technological research and development. Furthermore, an industry chain perspective analysis indicates that AI also contributes to improving the CCP of enterprises associated with the industry chain. The study recommended that the government actively promote the role of AI in enhancing corporate carbon performance and fully leverage its spillover effects across the industry chain, which is paramount importance for China to achieve its carbon emissions peaking and carbon neutrality targets.