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How does artificial intelligence accelerate the energy transition? Learning from empirical experience in OECD
1College of Economics and Management, Jingdezhen University, Jingdezhen, 333400, China.
Journal of Environmental Management
|July 4, 2025
Summary
Environmental policies, artificial intelligence, and green innovation significantly boost energy transitions. This research provides an empirical framework for achieving sustainable development goals, particularly SDG 7, through these key drivers.
Area of Science:
- Environmental Economics and Policy
- Technological Innovation Studies
- Sustainable Development Research
Background:
- The global energy transition is accelerating due to technological progress and economic expansion, particularly in developed nations.
- Achieving Sustainable Development Goals (SDGs), specifically SDG 7 (clean and affordable energy), necessitates a robust energy transition.
- The influence of artificial intelligence (AI) on the energy transition is a growing area of interest, requiring further scholarly investigation.
Purpose of the Study:
- To empirically examine the interplay between artificial intelligence, green technological innovations, and climate policies in facilitating the energy transition.
- To develop a framework for understanding how these factors contribute to achieving SDG 7.
- To bridge the research gap concerning the specific roles of AI and environmental policies in the energy transition.
Main Methods:
- Application of the Augmenting Anderson and Hsiao (AAH) estimation strategy.
- Utilized data from Organization for Economic Co-operation and Development (OECD) countries spanning the period 1990–2019.
- Empirical analysis focused on the correlation between environmental policy stringency, AI adoption, green innovation, and energy transition indicators.
Main Results:
- Environmental policy stringency demonstrated a significant positive impact on accelerating energy transitions.
- Artificial intelligence adoption and green technological innovation were found to have a strong, positive correlation with progress in energy transitions.
- The study confirms the synergistic effect of policy, AI, and innovation in driving the energy transition.
Conclusions:
- Robust environmental policies are crucial drivers for successful energy transitions.
- Artificial intelligence and green technological innovations are vital components that positively influence and accelerate the energy transition process.
- Integrating AI, fostering green innovation, and implementing stringent environmental policies are essential for achieving SDG 7 and broader sustainable development objectives.
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