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

Abstract

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.