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Can artificial intelligence technology innovation boost energy resilience? The role of green finance

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  • Nepal, Rabindra
  • Zhao, Xiaomeng
  • Dong, Kangyin
  • Wang, Jianda
  • Sharif, Arshian

Abstract

Energy systems are very fragile and vulnerable to various external shocks, so improving their resilience enables them to cope better. An important channel for building energy resilience is Artificial Intelligence (AI) technology, which provides innovative avenues for addressing this challenge. This study uses data from a balanced panel of 30 Chinese provinces from 2006 to 2019 to empirically evaluate how AI technology advancement affects China's energy resilience. Our study also examines the heterogeneity and possible impact mechanisms. The results show that AI technology innovation can effectively promote energy resilience. The study conducts several robustness checks to confirm the validity of this finding. However, this facilitation varies by region, with the highest effect in the central area, followed by the eastern and western regions. Moreover, the advancement of green finance is developed through AI technology innovation, which indirectly enhances energy resilience. This study aims to analyze the ability to improve energy systems' resilience through AI technology innovation, which provides valuable lessons for policymakers.

Suggested Citation

  • Nepal, Rabindra & Zhao, Xiaomeng & Dong, Kangyin & Wang, Jianda & Sharif, Arshian, 2025. "Can artificial intelligence technology innovation boost energy resilience? The role of green finance," Energy Economics, Elsevier, vol. 142(C).
    • Handle: RePEc:eee:eneeco:v:142:y:2025:i:c:s0140988324008685
    DOI: 10.1016/j.eneco.2024.108159
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    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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