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Investigating the asymmetric impact of artificial intelligence on renewable energy under climate policy uncertainty

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  • Tian, Lihui
  • Li, Xin
  • Lee, Cheng-Wen
  • Spulbăr, Cristi

Abstract

The focus on sustainable development and the transition to renewable energy sources has intensified due to the risks associated with climate change. This study provides new insights into the impact of artificial intelligence (AI) and climate policy uncertainty (CPU) on the development of renewable energy (RE) in China. Utilizing a nonlinear autoregressive distributed lag (NARDL) framework, the asymmetric relationship between these variables from January 2013 to April 2023 is revealed. The empirical results indicate a significant positive asymmetric effect of AI on RE development, with downturns in AI having a more pronounced influence compared to upswings. Additionally, CPU has a positive effect on RE development, also exhibiting an asymmetric pattern where declines in CPU have a more substantial impact than upturns. These findings highlight the critical roles of AI and CPU in renewable energy development and add new dimensions to existing research. Policymakers should consider these asymmetric dynamics when formulating strategies to facilitate the energy transition through climate policymaking and the advancement of AI-driven technologies.

Suggested Citation

  • Tian, Lihui & Li, Xin & Lee, Cheng-Wen & Spulbăr, Cristi, 2024. "Investigating the asymmetric impact of artificial intelligence on renewable energy under climate policy uncertainty," Energy Economics, Elsevier, vol. 137(C).
    • Handle: RePEc:eee:eneeco:v:137:y:2024:i:c:s0140988324005176
    DOI: 10.1016/j.eneco.2024.107809
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    More about this item

    Keywords

    Artificial intelligence; Climate policy uncertainty; Energy transition;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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