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

This paper empirically analyzes the impact of automation upon firms’ carbon dioxide emissions (CO2 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’ CO2 emissions intensity. Specifically, 1% increase in the robot density leads to a 0.018% decrease in CO2 emissions intensity. Second, we find that automation reduces firms’ CO2 emissions intensity by promoting firms’ technological innovation and improving management efficiency. Finally, we find that automation exerts a greater impact on reducing CO2 emissions intensity for firms in industries with high CO2 emissions intensity rather than low CO2 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’ CO2 emissions intensity after the global financial crisis.