The impact of artificial intelligence adoption and financial accessibility on energy sustainability

This study examines the impact of digital innovation and financial access on energy sustainability in China's energy sector from 2010 to 2021, focusing on artificial intelligence (AI) adoption and financial accessibility. Using a panel cointegration approach, the analysis finds that industrial...

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Main Author: Farhad Taghizadeh-Hesary
Format: Article
Language:English
Published: Elsevier 2025-05-01
Series:Energy Strategy Reviews
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2211467X25001075
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author Farhad Taghizadeh-Hesary
author_facet Farhad Taghizadeh-Hesary
author_sort Farhad Taghizadeh-Hesary
collection DOAJ
description This study examines the impact of digital innovation and financial access on energy sustainability in China's energy sector from 2010 to 2021, focusing on artificial intelligence (AI) adoption and financial accessibility. Using a panel cointegration approach, the analysis finds that industrial robots—used as a proxy for AI implementation—have not effectively reduced fossil fuel consumption in Chinese industries. Additionally, access to finance does not appear to contribute significantly to lower fossil fuel use. The findings suggest that to facilitate a sustainable energy transition, policymakers should prioritize green finance and enhance accessible funding channels for green projects. Establishing regulations for environmentally responsible AI applications and promoting investments in sustainable technology through tax incentives and grants could further support AI-driven efficiency improvements and sustainable practices across the sector.
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spelling doaj-art-604854ec1f494bf994b7e87fc5e844dc2025-08-20T02:05:07ZengElsevierEnergy Strategy Reviews2211-467X2025-05-015910174410.1016/j.esr.2025.101744The impact of artificial intelligence adoption and financial accessibility on energy sustainabilityFarhad Taghizadeh-Hesary0Tokai University Research Institute for Environment and Sustainability (TRIES), Tokai University, Tokyo, Japan; Narxoz University, Zhandossov str 55., Almaty, KazakhstanThis study examines the impact of digital innovation and financial access on energy sustainability in China's energy sector from 2010 to 2021, focusing on artificial intelligence (AI) adoption and financial accessibility. Using a panel cointegration approach, the analysis finds that industrial robots—used as a proxy for AI implementation—have not effectively reduced fossil fuel consumption in Chinese industries. Additionally, access to finance does not appear to contribute significantly to lower fossil fuel use. The findings suggest that to facilitate a sustainable energy transition, policymakers should prioritize green finance and enhance accessible funding channels for green projects. Establishing regulations for environmentally responsible AI applications and promoting investments in sustainable technology through tax incentives and grants could further support AI-driven efficiency improvements and sustainable practices across the sector.http://www.sciencedirect.com/science/article/pii/S2211467X25001075D83Q43L60O13
spellingShingle Farhad Taghizadeh-Hesary
The impact of artificial intelligence adoption and financial accessibility on energy sustainability
Energy Strategy Reviews
D83
Q43
L60
O13
title The impact of artificial intelligence adoption and financial accessibility on energy sustainability
title_full The impact of artificial intelligence adoption and financial accessibility on energy sustainability
title_fullStr The impact of artificial intelligence adoption and financial accessibility on energy sustainability
title_full_unstemmed The impact of artificial intelligence adoption and financial accessibility on energy sustainability
title_short The impact of artificial intelligence adoption and financial accessibility on energy sustainability
title_sort impact of artificial intelligence adoption and financial accessibility on energy sustainability
topic D83
Q43
L60
O13
url http://www.sciencedirect.com/science/article/pii/S2211467X25001075
work_keys_str_mv AT farhadtaghizadehhesary theimpactofartificialintelligenceadoptionandfinancialaccessibilityonenergysustainability
AT farhadtaghizadehhesary impactofartificialintelligenceadoptionandfinancialaccessibilityonenergysustainability