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AbstractWhile the diffusion of industrial robots has had a significant impact on the economy and society, more research is needed to understand how robots contribute to sustainable growth. This study uses paired data on China's county‐level carbon emissions and industrial robot installations from 2008 to 2017, employing a Bartik shift‐share instrumental variable design to estimate the economic and sustainable effects of industrial robot diffusion. The study finds that industrial robots significantly promote economic growth and contribute to carbon emission reduction as confirmed by robust IV 2SLS and general PSM‐DID methods. Additionally, a heterogeneity analysis shows that industrial robots have a stronger impact on sustainable growth in underdeveloped and small‐medium cities, especially in low‐skilled industries. Finally, the study identifies industrial structural change, clean energy use, and improved productivity and innovation as key factors that mediate the impact of industrial robots on sustainable development.

AbstractAmidst the global upsurge in industrial robot deployment, there remains a notable gap in our understanding of their environmental impact. This paper explores how the introduction of industrial robots has changed air quality at both the local and neighborhood levels in China. Using the Spatial Durbin Model, we investigate the regional spillovers of PM 2.5 concentration and the diffusion of this innovative technology. Our findings reveal that the rise of robots significantly reduces air pollution in the local area, while exacerbating it in neighboring regions. This contrast is mainly because pollution-intensive industries are more inclined to relocate to neighboring regions than their cleaner counterparts, after the local use of robots increases. Throughout the process, internal costs rather than external costs dominate firms' relocation decisions. This study provides novel insights into the complex environmental externalities associated with the spread of industrial robots and highlights the critical issue of growing environmental inequality in the era of emerging technologies.