Latent Information in the Evolving Energy Structure

Abstract

Recent studies indicate that Artificial Intelligence (AI) technology, characterized by its integration of information and communication technology attributes, exerts a multifaceted influence on the energy system. The authors employ Difference-in-Differences (DID) and Triple-Difference (DDD) models to investigate the effects of AI. The research initially demonstrates that AI may exhibit dual attributes of constraining energy structure. Specifically, the rapid development of AI tends to increase the proportion of fossil fuel-based electricity generation while optimizing the consumption of renewable energy. Furthermore, the degradation of energy structure stems from the surge in electricity consumption by AI, which the renewable energy consumption capacity is unable to satisfy. Lastly, industrial agglomeration effects and the construction of the digital economy have positive impacts on development of renewable energy; technological innovation aids in mitigating the negative shocks to the energy structure. This study provides a new perspective on the role of AI technology in energy transition.