Energy Efficiency and AI Empowerment via Green Finance

This chapter links financial resource allocation with technological diffusion to investigate the catalytic role of GF in advancing AI investment, promoting EE, and fostering low-carbon urban development. Drawing on data from 282 Chinese cities between 2014 and 2019, this chapter shows that GF significantly promotes AI adoption. Heterogeneity analysis suggests that this effect is more salient in eastern and central cities, non–resource-dependent cities, smaller cities with populations below five million, and cities with relatively low initial levels of AI. Further evidence demonstrates that GF not only enhances EE but also generates positive spatial spillover effects on urban EE.