Financial investments in AI-based technologies and carbon footprint in selected advanced industrial economies

dc.contributor.authorKonat, Gokhan
dc.contributor.authorSalihoglu, Esengul
dc.contributor.authorHan, Aysegul
dc.date.accessioned2026-04-04T13:33:06Z
dc.date.available2026-04-04T13:33:06Z
dc.date.issued2026
dc.departmentİnönü Üniversitesi
dc.description.abstractArtificial intelligence (AI) has rapidly expanded across multiple industries and technologies, driving economic growth and offering innovative solutions to structural challenges. However, its environmental impact remains contested. While firms investing in AI aim to lower its carbon footprint, its widespread use continues to generate significant emissions. This study examines the environmental effects of AI investments, particularly on carbon emissions, while also accounting for human and economic development indicators. The analysis employs the Panel ARDL-PMG approach using data from 2012-2023 for nine technologically advanced economies characterized by extensive use of robotics (South Korea, Japan, Germany, the United States, China, Singapore, Sweden, Italy, and France). The findings reveal the existence of a stable long-run equilibrium among the variables. The negative and significant ECT indicates that about 32% of short-term imbalances are corrected each year, suggesting that the system steadily moves toward its long-run equilibrium. In the long run, per capita GDP and renewable energy consumption reduce carbon emissions, whereas AI investments (AIINV), Foreign Direct Investment (FDI), and the Human Development Index (HDI) increase them. The results show that AIINV and FDI do not contribute to reducing carbon emissions. In this context, the findings suggest that investments in the energy sector are not directed toward encouraging the transformation of energy sources. These results highlight the environmental risks posed by the growing prevalence of AI. However, AIINV and FDI have the potential to help reduce carbon emissions if they are aligned with the transformation of energy sources. Thus, aligning AI with green innovation and sustainable environmental policies is essential. This study emphasizes the importance of enabling the energy transition to reduce carbon emissions arising from AIINV and FDI in the sector. Promoting eco-efficient technologies and sustainable innovation processes can help mitigate the carbon-intensive effects of digital transformation.
dc.identifier.doi10.1186/s13021-025-00383-4
dc.identifier.issn1750-0680
dc.identifier.issue1
dc.identifier.pmid41483362
dc.identifier.scopus2-s2.0-105029029967
dc.identifier.scopusqualityQ1
dc.identifier.urihttps://doi.org/10.1186/s13021-025-00383-4
dc.identifier.urihttps://hdl.handle.net/11616/108928
dc.identifier.volume21
dc.identifier.wosWOS:001678185100001
dc.identifier.wosqualityQ1
dc.indekslendigikaynakWeb of Science
dc.indekslendigikaynakScopus
dc.indekslendigikaynakPubMed
dc.language.isoen
dc.publisherBmc
dc.relation.ispartofCarbon Balance and Management
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı
dc.rightsinfo:eu-repo/semantics/openAccess
dc.snmzKA_WOS_20250329
dc.subjectArtificial intelligence financial investments
dc.subjectCarbon footprint
dc.subjectAdvanced industrial economies
dc.subjectEnvironmental sustainability
dc.subjectTechnological innovation and environment
dc.subjectPanel ARDL-PMG
dc.titleFinancial investments in AI-based technologies and carbon footprint in selected advanced industrial economies
dc.typeArticle

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