Blessings or Threats' The Impact of Artificial Intelligence-Innovation on Climate Change by Issa Hamadou, Teguh Yudo Wicaksono

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 31st Dec 2024  SSRN
Posted by Alumni
May 20, 2025
Climate change is one of the most important issues facing humanity today. Carbon dioxide emissions from industry bring it on. The consequences of climate change are becoming more apparent. The intensity and frequency of storms, droughts, fires, and flooding have increased. Artificial intelligence (AI) is frequently cited as a viable solution to handle the obstacles of climate change, as the severity of these issues continues to rise. This paper tries to analyze the impact of AI innovation on climate change. The number of AI patents is a proxy for AI innovation while greenhouse gas emission and renewable energy output are proxies for climate change. Panel data from 69 countries are analyzed using a fixed effect approach. The results highlighted that AI innovation increases greenhouse gas emissions. However, when we controlled, the effect of renewable energy output, the positive effect turns to be negative. Once more, AI innovation has a positive relation toward renewable energy output. The robustness results showed that the coefficient of the AI variable does not vary although we divided the sample size into two and also added variables related to income classification. It can be said that AI is a blessing for society as it could be applied to reduce the impact of climate change. From the results, this research presented some of the policy recommendations Future work could use another variable for AI measurement. learn more on SSRN
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