The effect of automation on firms’ carbon dioxide emissions of China

Abstract

Abstract This paper empirically analyzes the impact of automation upon firms’ carbon dioxide emissions (CO 2 emissions) of China by using data for the period 1998–2009. Our research yields a few findings. First, we find that automation as measured by the robot density can reduce firms’ CO 2 emissions intensity. Specifically, 1% increase in the robot density leads to a 0.018% decrease in CO 2 emissions intensity. Second, we find that automation reduces firms’ CO 2 emissions intensity by promoting firms’ technological innovation and improving management efficiency. Finally, we find that automation exerts a greater impact on reducing CO 2 emissions intensity for firms in industries with high CO 2 emissions intensity rather than low CO 2 emissions intensity, and for firms in capital-intensive industries rather than non-capital-intensive industries, as well as firms in industries with high servitization of manufacturing rather than low servitization of manufacturing. Moreover, the mitigating effects of automation have been given greater play on firms’ CO 2 emissions intensity after the global financial crisis.