Towards carbon neutrality: Will artificial intelligence and green bond become catalysts?

Abstract

The burgeoning domains of artificial intelligence technology and green bonds market are emerging as pivotal forces for the attainment of carbon neutrality objectives. Therefore, this study adopts a dynamic lens to detect the long- and short-term interdependencies among artificial intelligence (AII), green bonds (GBI) and carbon neutrality (CNI). Employing the quantile autoregressive distributed lag model, empirical results denote that artificial intelligence contributes to an uptick in carbon emissions on account of the necessary digital infrastructure, while playing a pivotal role in aiding the realization of carbon neutrality over long term. In contrast, green bonds are instrumental in curbing emissions over the short term, and the long-term impact is characterized by a mixed correlation with emissions levels. Green bonds emerge as a particularly timely policy instrument for emission reduction, while artificial intelligence is perceived as a more durable and consistent facilitator for progress towards carbon neutrality. Besides, both AII and GBI have locational asymmetric impacts on the CNI. The long-term effects of both artificial intelligence and green bonds on carbon dioxide emissions are more substantial than the short-term effects. Finally, targeted policies are provided to promote achieving carbon neutrality goals through reasonable utilization of artificial intelligence and green bonds.