IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v17y2024i3p649-d1329235.html
   My bibliography  Save this article

The Role of AI in Improving Environmental Sustainability: A Focus on Energy Management

Author

Listed:
  • Naiara Uriarte-Gallastegi

    (Faculty of Engineering from Bilbao, Department of Business Management, University of the Basque Country, Ingeniero Torres Quevedo Square, 1, 48013 Bilbao, Spain)

  • Germán Arana-Landín

    (Faculty of Engineering from Gipuzkoa, Department of Business Management, University of the Basque Country, Europa Square 1, 20018 San Sebastian, Spain)

  • Beñat Landeta-Manzano

    (Faculty of Engineering from Bilbao, Department of Business Management, University of the Basque Country, Ingeniero Torres Quevedo Square, 1, 48013 Bilbao, Spain)

  • Iker Laskurain-Iturbe

    (Faculty of Engineering from Gipuzkoa, Department of Business Management, University of the Basque Country, Europa Square 1, 20018 San Sebastian, Spain)

Abstract

This research addresses the increasing importance of understanding how Artificial Intelligence can facilitate the transition of companies to a Circular Economy model. This study focuses on energy management, examining its impact on efficiency and emissions across a multi-case analysis of 18 projects in diverse sectors. The findings indicate that Artificial Intelligence positively influences both variables, with variations across applications and sectors. Notably, Artificial Intelligence significantly enhances energy efficiency in four out of six sectors, achieving over 5% improvement in half of the projects. Regarding emissions, positive effects are observed in 15 out of 18 projects, resulting in over 5% reductions in seven cases. Artificial Intelligence plays a pivotal role in emissions reduction in the Design and Energy sectors, with some projects achieving over 20% reductions. Additionally, this study explores how improved energy efficiency positively affects strategic business variables, such as cost, quality, and delivery time. The impact on emissions contributes to reducing occupational risks, particularly those associated with chemical and biological agents. Although managers are satisfied, measures need to be taken to overcome the lack of employee acceptance. These findings are of great interest to the stakeholders involved in the integration of Artificial Intelligence into companies.

Suggested Citation

  • Naiara Uriarte-Gallastegi & Germán Arana-Landín & Beñat Landeta-Manzano & Iker Laskurain-Iturbe, 2024. "The Role of AI in Improving Environmental Sustainability: A Focus on Energy Management," Energies, MDPI, vol. 17(3), pages 1-15, January.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:3:p:649-:d:1329235
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/17/3/649/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/17/3/649/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Qing Yin & Delu Wang & Yadong Wang, 2023. "Serial Mediation Model Linking Returnee Entrepreneurship Education and Green Returnee Entrepreneurial Behavior: An Analysis of Environmental Improvement," Sustainability, MDPI, vol. 15(19), pages 1-15, September.
    2. Liu, Liang & Yang, Kun & Fujii, Hidemichi & Liu, Jun, 2021. "Artificial intelligence and energy intensity in China’s industrial sector: Effect and transmission channel," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 276-293.
    3. Will McDowall & Yong Geng & Beijia Huang & Eva Barteková & Raimund Bleischwitz & Serdar Türkeli & René Kemp & Teresa Doménech, 2017. "Circular Economy Policies in China and Europe," Journal of Industrial Ecology, Yale University, vol. 21(3), pages 651-661, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xiangyi Li & Qing Wang & Ying Tang, 2024. "The Impact of Artificial Intelligence Development on Urban Energy Efficiency—Based on the Perspective of Smart City Policy," Sustainability, MDPI, vol. 16(8), pages 1-22, April.
    2. D. D’Amato, 2021. "Sustainability Narratives as Transformative Solution Pathways: Zooming in on the Circular Economy," Circular Economy and Sustainability, Springer, vol. 1(1), pages 231-242, June.
    3. Aurelia Rybak & Aleksandra Rybak, 2021. "Methods of Ensuring Energy Security with the Use of Hard Coal—The Case of Poland," Energies, MDPI, vol. 14(18), pages 1-25, September.
    4. Steliana Rodino & Ruxandra Pop & Cristina Sterie & Andreea Giuca & Eduard Dumitru, 2023. "Developing an Evaluation Framework for Circular Agriculture: A Pathway to Sustainable Farming," Agriculture, MDPI, vol. 13(11), pages 1-24, October.
    5. Qinglan Liu & Longjian Yang & Miying Yang, 2021. "Digitalisation for Water Sustainability: Barriers to Implementing Circular Economy in Smart Water Management," Sustainability, MDPI, vol. 13(21), pages 1-28, October.
    6. Kirchherr, Julian & Piscicelli, Laura & Bour, Ruben & Kostense-Smit, Erica & Muller, Jennifer & Huibrechtse-Truijens, Anne & Hekkert, Marko, 2018. "Barriers to the Circular Economy: Evidence From the European Union (EU)," Ecological Economics, Elsevier, vol. 150(C), pages 264-272.
    7. Qingyu Zhang & Aman Ullah & Sana Ashraf & Muhammad Abdullah, 2024. "Synergistic Impact of Internet of Things and Big-Data-Driven Supply Chain on Sustainable Firm Performance," Sustainability, MDPI, vol. 16(13), pages 1-20, July.
    8. Daniel Ddiba & Kim Andersson & Arno Rosemarin & Helfrid Schulte-Herbrüggen & Sarah Dickin, 2022. "The circular economy potential of urban organic waste streams in low- and middle-income countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(1), pages 1116-1144, January.
    9. Leslier Valenzuela-Fernández & Manuel Escobar-Farfán, 2022. "Zero-Waste Management and Sustainable Consumption: A Comprehensive Bibliometric Mapping Analysis," Sustainability, MDPI, vol. 14(23), pages 1-24, December.
    10. Yuxue Yang & Xuejiao Tan & Yafei Shi & Jun Deng, 2023. "What are the core concerns of policy analysis? A multidisciplinary investigation based on in-depth bibliometric analysis," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    11. Yeo, Lip Siang & Teng, Sin Yong & Ng, Wendy Pei Qin & Lim, Chun Hsion & Leong, Wei Dong & Lam, Hon Loong & Wong, Yat Choy & Sunarso, Jaka & How, Bing Shen, 2022. "Sequential optimization of process and supply chains considering re-refineries for oil and gas circularity," Applied Energy, Elsevier, vol. 322(C).
    12. Gavin Melles, 2021. "Figuring the Transition from Circular Economy to Circular Society in Australia," Sustainability, MDPI, vol. 13(19), pages 1-20, September.
    13. Jing Shao, 2019. "Sustainable consumption in China: New trends and research interests," Business Strategy and the Environment, Wiley Blackwell, vol. 28(8), pages 1507-1517, December.
    14. Mohammadreza Akbari & John L. Hopkins, 2022. "Digital technologies as enablers of supply chain sustainability in an emerging economy," Operations Management Research, Springer, vol. 15(3), pages 689-710, December.
    15. Magdalena Muradin & Zenon Foltynowicz, 2019. "The Circular Economy in the Standardized Management System," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(S13), pages 871-871, November.
    16. Andrea Cecchin & Roberta Salomone & Pauline Deutz & Andrea Raggi & Laura Cutaia, 2021. "What Is in a Name? The Rising Star of the Circular Economy as a Resource-Related Concept for Sustainable Development," Circular Economy and Sustainability, Springer, vol. 1(1), pages 83-97, June.
    17. Yan Ma & Johan Berg Pettersen, 2023. "Life cycle assessment of pig iron production from bauxite residue: A European case study," Journal of Industrial Ecology, Yale University, vol. 27(6), pages 1639-1652, December.
    18. Nallapaneni Manoj Kumar & Shauhrat S. Chopra, 2022. "Leveraging Blockchain and Smart Contract Technologies to Overcome Circular Economy Implementation Challenges," Sustainability, MDPI, vol. 14(15), pages 1-18, August.
    19. Ping Chen & Jiawei Gao & Zheng Ji & Han Liang & Yu Peng, 2022. "Do Artificial Intelligence Applications Affect Carbon Emission Performance?—Evidence from Panel Data Analysis of Chinese Cities," Energies, MDPI, vol. 15(15), pages 1-16, August.
    20. Wang, Bo & Wang, Jianda & Dong, Kangyin & Nepal, Rabindra, 2024. "How does artificial intelligence affect high-quality energy development? Achieving a clean energy transition society," Energy Policy, Elsevier, vol. 186(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:17:y:2024:i:3:p:649-:d:1329235. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.