Examining the role of artificial intelligence, financial innovation, and green energy transition in enhancing environmental quality

The growth of emerging economies has led to heightened environmental challenges, underscoring the importance of implementing sustainable technologies and clean energy transitions to alleviate the ecological consequences. Hence, this study explores the roles of Artificial Intelligence (AI), Financial Innovation (FI), and Green Energy Transition (GET) in improving environmental quality in emerging economies. The results are robust using advanced econometric techniques that account for cross-sectional dependence, heterogeneity, unit roots, and cointegration. We test short- and long-run relationships using the cross-sectional augmented autoregressive distributed lag (CS-ARDL) model and validate the results using feasible generalized least squares (FGLS) estimators. The findings indicated the roles of AI (−0.029), FI (−0.071), and GET (−0.144) in decreasing the ecological footprint and enhancing environmental quality. However, economic growth (0.337) contributes to an increased ecological footprint. These findings highlight that sustainable technologies, FIs, and clean energy transitions are necessary to address environmental issues and sustainable economic growth. These findings provide policymakers with valuable insights into the sustainable development of emerging economies.

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Publication Details

Journal
International Review of Economics & Finance
Published
2025-04-04
DOI
https://doi.org/10.1016/j.iref.2025.104092
Citations
12
Primary Topic
Energy, Environment, Economic Growth
Type
article
Field-Weighted Citation Impact
37.57
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article

Examining the role of artificial intelligence, financial innovation, and green energy transition in enhancing environmental quality

Abdul Majeed, Muniba, Yuantao Xie, Anna Min Du et al.
12 citations
International Review of Economics & Finance
Energy, Environment, Economic Growth
37.57
article

Examining the role of artificial intelligence, financial innovation, and green energy transition in enhancing environmental quality

Abdul Majeed, Muniba, Yuantao Xie, Anna Min Du, Chongyan Gao
article en
12 citations

Abstract

The growth of emerging economies has led to heightened environmental challenges, underscoring the importance of implementing sustainable technologies and clean energy transitions to alleviate the ecological consequences. Hence, this study explores the roles of Artificial Intelligence (AI), Financial Innovation (FI), and Green Energy Transition (GET) in improving environmental quality in emerging economies. The results are robust using advanced econometric techniques that account for cross-sectional dependence, heterogeneity, unit roots, and cointegration. We test short- and long-run relationships using the cross-sectional augmented autoregressive distributed lag (CS-ARDL) model and validate the results using feasible generalized least squares (FGLS) estimators. The findings indicated the roles of AI (−0.029), FI (−0.071), and GET (−0.144) in decreasing the ecological footprint and enhancing environmental quality. However, economic growth (0.337) contributes to an increased ecological footprint. These findings highlight that sustainable technologies, FIs, and clean energy transitions are necessary to address environmental issues and sustainable economic growth. These findings provide policymakers with valuable insights into the sustainable development of emerging economies.

International Review of Economics & FinanceVol. 100
University of International Business and Economics (CN), Edinburgh Napier University (GB)
Industry, innovation and infrastructure
Openalex Percentile: Top 0%
Energy, Environment, Economic Growth
37.57
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Examining the role of artificial intelligence, financial innovation, and green energy transition in enhancing environmental quality — Abdul Majeed, Muniba, et al. · International Review of Economics & Finance (2025) | TGRS Research Map | TGRS