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<p>Drawing on cross-country, sector-level panel data, this study employs the Malmquist–Luenberger Productivity Index (MLPI) to evaluate the green total factor productivity (GTFP) of 57 automobile manufacturers across 12 European countries over the period 2010–2019. The findings indicate that the mean Malmquist Productivity Index (MPI) equals 1.045, whereas the MLPI accounting for CO₂ emissions is 1.027. The results further suggest that improvements in green productivity are driven primarily by technical efficiency, while conventional productivity growth is largely attributable to efficiency gains. The country-level analysis indicates that German manufacturers consistently achieve higher MLPI scores, while Polish firms exhibit comparatively weaker performance over the entire period. This study identifies four main results. First, increasing geopolitical risk (GPR) exerts a negative direct effect on green total factor productivity. Second, the adoption of artificial intelligence (AI) strengthens the resilience of green productivity in the presence of elevated GPR. Third, stringent environmental regulations play a protective role in mitigating the adverse impact of GPR on GTFP. Finally, better access to information gained from close geographic, cultural, and trade linkages enhances the resilience of GTFP against growing geopolitical dynamics. Overall, this study provides empirical evidence that the firm strategies, technological capabilities, and policy frameworks can jointly support green productivity under conditions of geopolitical uncertainty.</p>

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Green manufacturing under geopolitical uncertainty: the role of artificial intelligence, environmental policy, and information in European car makers

  • 期刊论文

  • 发表日期：

    2026年5月11日

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  • Muhammad Salman

摘要

Drawing on cross-country, sector-level panel data, this study employs the Malmquist–Luenberger Productivity Index (MLPI) to evaluate the green total factor productivity (GTFP) of 57 automobile manufacturers across 12 European countries over the period 2010–2019. The findings indicate that the mean Malmquist Productivity Index (MPI) equals 1.045, whereas the MLPI accounting for CO₂ emissions is 1.027. The results further suggest that improvements in green productivity are driven primarily by technical efficiency, while conventional productivity growth is largely attributable to efficiency gains. The country-level analysis indicates that German manufacturers consistently achieve higher MLPI scores, while Polish firms exhibit comparatively weaker performance over the entire period. This study identifies four main results. First, increasing geopolitical risk (GPR) exerts a negative direct effect on green total factor productivity. Second, the adoption of artificial intelligence (AI) strengthens the resilience of green productivity in the presence of elevated GPR. Third, stringent environmental regulations play a protective role in mitigating the adverse impact of GPR on GTFP. Finally, better access to information gained from close geographic, cultural, and trade linkages enhances the resilience of GTFP against growing geopolitical dynamics. Overall, this study provides empirical evidence that the firm strategies, technological capabilities, and policy frameworks can jointly support green productivity under conditions of geopolitical uncertainty.