IDEAS home Printed from https://ideas.repec.org/a/aid/journl/v8y2025i1p40-57.html
   My bibliography  Save this article

Artificial Intelligence in Regulating Production Volumes for Sustainable Development: Qualitative and Quantitative Aspects

Author

Listed:
  • Oleksandr Melnychenko

    (Gdansk University of Technology, Gdansk, Poland)

Abstract

This study explores the intersection of artificial intelligence and economic modeling by extending the classical Cobb–Douglas production function into a custom neural network architecture implemented in TensorFlow. Motivated by the growing emphasis on sustainable development and its often ambiguous role in economic performance, the research addresses a gap in existing literature: the lack of integrated models that quantify the effect of Sustainable Development Goals (SDGs) within production functions. While previous studies have assessed SDGs and productivity separately, few have embedded sustainability metrics directly into core economic frameworks alongside traditional inputs like capital and labor. To fill this gap, the proposed model features trainable subcomponents for total factor productivity (TFP), physical capital, human capital, and SDG-related factors. Key coefficients—including capital elasticity (α), labor elasticity (β), and an SDG penalty term (γ)—are optimized using gradient descent. Experimental results reveal that while SDG constraints can initially appear to limit economic output, the model identifies conditions under which specific SDG factors contribute positively to productivity. To manage this duality, a three-level AI-based regulatory mechanism is introduced: (1) post-training SDG weighting based on their marginal output contribution, (2) filtering of influential SDG indicators via the Pareto principle, and (3) architectural separation of SDG pathways with controlled activation. These innovations enhance the interpretability and efficiency of sustainability-aware economic forecasting. The findings not only challenge the assumption of a trade-off between growth and sustainability but also suggest that targeted regulation of sustainability inputs can optimize outcomes. Future work may expand this framework to sector-specific models or broader macroeconomic simulations.

Suggested Citation

  • Oleksandr Melnychenko, 2025. "Artificial Intelligence in Regulating Production Volumes for Sustainable Development: Qualitative and Quantitative Aspects," Virtual Economics, The London Academy of Science and Business, vol. 8(1), pages 40-57, March.
  • Handle: RePEc:aid:journl:v:8:y:2025:i:1:p:40-57
    DOI: 10.34021/ve.2025.08.01(3)
    as

    Download full text from publisher

    File URL: https://www.virtual-economics.eu/index.php/VE/article/download/464/184
    Download Restriction: no

    File URL: https://libkey.io/10.34021/ve.2025.08.01(3)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aid:journl:v:8:y:2025:i:1:p:40-57. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Aleksy Kwilinski (email available below). General contact details of provider: https://edirc.repec.org/data/akwilin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.