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The Green Finance: AI's Contribution to Environmental Sustainability
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Author(s): Chedlia Farhat (Faculty of Economic Sciences and Management of Tunis, Tunisia)and Mouna Mouelhi (Faculty of Economic Sciences and Management of Tunis, Tunisia)
Copyright: 2026
Pages: 26
Source title:
AI and Sustainability for Global Security
Source Author(s)/Editor(s): Amal Jmaii (University of Tunis el Manar, Tunisia)
DOI: 10.4018/979-8-3373-1077-0.ch007
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Abstract
This study examines the interplay between artificial intelligence, sustainable finance, and environmental sustainability in four OECD countries from 2007 to 2023. Using the panel ARDL method, our analysis shows that AI reduces carbon emissions, particularly in the long run. Initially, AI investments lead to a temporary rise in emissions due to implementation costs, but this trend reverses over time, aiding carbon neutrality and supporting SDGs, especially SDG 7 and SDG 13. The findings stress the need for short-term fiscal incentives and long-term regulatory frameworks integrating AI into sustainable finance. This research enriches the literature by addressing AI's overlooked role in sustainability and providing policy insights. Future studies could expand the geographic scope and examine AI's specific contributions to sustainable finance.
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