How artificial intelligence and environmental regulation influence the efficiency of the circular economy in the context of sustainable development
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Enhancing urban circular economy efficiency (UCEE) is crucial for sustainable development, yet the roles of artificial intelligence and environmental regulation remain unclear. Using panel data for 30 Chinese provinces from 2013–2022, we measure UCEE with a Super-SBM model including undesirable outputs, track dynamics via the Global Malmquist–Luenberger index, and estimate spatial effects with a spatial Durbin model. Nationally, the average UCEE index rises from about 0.3 to above 0.7, but large gaps persist, with leading eastern provinces approaching 1.0 and some northeastern provinces remaining below 0.1. The GML index and its EC and TC components stay above 1, indicating sustained efficiency gains dominated by technological progress. Spatial results show that both artificial intelligence and environmental regulation significantly inhibit local UCEE, while artificial intelligence generates positive spillovers; their interaction produces a “1 + 1<2” crowding-out effect, underscoring the need for smarter, better-coordinated green governance.
