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Article

Artificial Intelligence Empowerment and Carbon Emission Performance: A Systems Perspective on Sustainable Cleaner Production

by
Shun Li
,
Ruijie Song
,
Sanggyun Na
* and
Tingxian Yan
College of Business Administration, Wonkwang University, No. 460, Iksandae-ro, Iksan 54538, Republic of Korea
*
Author to whom correspondence should be addressed.
Systems 2025, 13(10), 916; https://doi.org/10.3390/systems13100916 (registering DOI)
Submission received: 21 August 2025 / Revised: 4 October 2025 / Accepted: 15 October 2025 / Published: 18 October 2025
(This article belongs to the Section Systems Practice in Social Science)

Abstract

Amid China’s pursuit of its “dual carbon” goals, systematic theoretical and empirical research remains limited to the potential role of artificial intelligence (AI) in enhancing firms’ carbon emission performance (CEP). From a systems perspective, this study developed a dynamic learning game model that integrates a constant elasticity of substitution (CES) production function, an AI-enabled abatement function, and institutional constraints to analyze firms’ cleaner production and technology adoption under simultaneous budgetary and emission constraints. Empirically, we drew on panel data of 3404 Chinese A-share listed firms from 2013 to 2023 and employ a two-way fixed-effect model to examine the effect of AI empowerment on CEP. The results showed that AI significantly improves CEP overall, though its effect is potentially constrained by energy rebound effects. Robustness checks using alternative measures and specifications confirmed the reliability of the findings and further indicated that AI’s abatement effect became stronger after 2018, consistent with technological maturity and institutional improvement. Mechanism analysis suggests two plausible pathways: (1) improving ESG performance and strengthening environmental governance; and (2) stimulating green innovation to support low-carbon technology development and application. Heterogeneity analysis indicates that AI’s effects are more evident in regions with higher marketization, in private firms, and in non-pollution-intensive industries. By contrast, firms led by executives with overseas experience tend to exhibit weaker effects, a pattern consistent with institutional fit and localization considerations. This study contributes to cleaner production theory by highlighting firm-level mechanisms of AI-enabled carbon governance while offering practical insights for low-carbon transitions and digital decarbonization strategies in developing economies.
Keywords: artificial intelligence empowerment; carbon emission performance; cleaner production; ESG performance; green innovation capability; marketization; executives’ overseas backgrounds artificial intelligence empowerment; carbon emission performance; cleaner production; ESG performance; green innovation capability; marketization; executives’ overseas backgrounds

Share and Cite

MDPI and ACS Style

Li, S.; Song, R.; Na, S.; Yan, T. Artificial Intelligence Empowerment and Carbon Emission Performance: A Systems Perspective on Sustainable Cleaner Production. Systems 2025, 13, 916. https://doi.org/10.3390/systems13100916

AMA Style

Li S, Song R, Na S, Yan T. Artificial Intelligence Empowerment and Carbon Emission Performance: A Systems Perspective on Sustainable Cleaner Production. Systems. 2025; 13(10):916. https://doi.org/10.3390/systems13100916

Chicago/Turabian Style

Li, Shun, Ruijie Song, Sanggyun Na, and Tingxian Yan. 2025. "Artificial Intelligence Empowerment and Carbon Emission Performance: A Systems Perspective on Sustainable Cleaner Production" Systems 13, no. 10: 916. https://doi.org/10.3390/systems13100916

APA Style

Li, S., Song, R., Na, S., & Yan, T. (2025). Artificial Intelligence Empowerment and Carbon Emission Performance: A Systems Perspective on Sustainable Cleaner Production. Systems, 13(10), 916. https://doi.org/10.3390/systems13100916

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