Do Artificial Intelligence (AI) and Finance Matter for Renewable Energy Development? Fresh Evidence From Waste‐Recycled Economies

ABSTRACT Over the last few decades, the Globe has become an eyewitness to a blend of socioeconomic and environmental issues. Interestingly, the globe has performed well in adopting green initiatives, compelling nations to strive for social, economic, and environmental sustainability. Recently, economies have primarily focused on developing renewable energy plans to promote affordable energy under the framework of SDG 7. However, most policymakers are unaware of the critical issues and their best alternative in renewable energy development (RED) plans. For the first time, this study introduces the essential factors of RED that may contribute to improving the actual situation of renewable energy development. In terms of these factors, this study encompasses public‐private partnerships (PPPs), the circular economy, artificial intelligence, financial activities, income, and skilled labor for nine waste‐recycled economies over the period from 2000 to 2022. However, this study utilizes the most robust estimators to obtain valuable outcomes. The investigated outcomes demonstrate a positive relationship between financial development and income, as measured by RED. Surprisingly, artificial intelligence significantly contributes to RED by 7.875%. On the other hand, public‐private partnerships and the circular economy exhibit an inverse connection with RED, which is unusual for selected nations. Similarly, the impact of skilled labor remains insignificant for the selected countries. Overall, the financial development performance is considerable, as it supports all sectors of the economy through its financial services. Thus, this study uses financial depth, efficiency, and stability as additional RED determinants. Outcomes describe the significant contribution of financial stability in the RED. In addition, the present research examines the moderate effect of the FD on the circular economy, public‐private partnerships, and artificial intelligence. This study makes a significant contribution only in the case of the circular economy. Ultimately, this study suggests green implications for strengthening sustainable renewable energy development.