IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v145y2025ics0140988325002476.html
   My bibliography  Save this article

Is the end of AI in photovoltaic power? Evidence from China

Author

Listed:
  • Zhang, Haoran
  • Yu, Xiaohong
  • Gao, Zixuan

Abstract

The purpose of this paper is to explore the intersection of AI and PV in the energy sector, and to analyze in depth this profound change in the energy industry brought about by the combination of Photovoltaic and AI. This study employs a full-sample and sub-sample approach to determine the interrelationship between China's Artificial Intelligence Index (AI) and Photovoltaic Index (PI). The quantitative discussion shows that AI has both favorable and unfavorable impacts on PI, and the positive impacts suggest that AI plays a motivating role in PV and contributes to the operational efficiency and economic benefits of PV plants. However, if the impact of AI on PI is negative, this incentivizing role cannot always be determined, mainly due to existing bottlenecks in PV technology. At the same time, PI has both favorable and unfavorable impacts on AI, and the positive impacts of PI on AI highlight the enormous potential and opportunities offered by the convergence of PV + AI. In terms of AI power support, PV power generation does show unrivaled potential. However, the negative impacts of PI on AI also imply the risks and challenges that may be posed by data security and privacy protection issues, transparency and interpretability issues of AI algorithms, and so on. This study provides a fresh perspective on the future development of energy-technology convergence and will provide meaningful recommendations to promote AI technology and PV industry to enhance each other for win-win situation.

Suggested Citation

  • Zhang, Haoran & Yu, Xiaohong & Gao, Zixuan, 2025. "Is the end of AI in photovoltaic power? Evidence from China," Energy Economics, Elsevier, vol. 145(C).
  • Handle: RePEc:eee:eneeco:v:145:y:2025:i:c:s0140988325002476
    DOI: 10.1016/j.eneco.2025.108423
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988325002476
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.eneco.2025.108423?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
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Shuai, Jing & Zhao, Yujia & Shuai, Chuanmin & Wang, Jingjin & Yi, Tian & Cheng, Jinhua, 2023. "Assessing the international co-opetition dynamics of rare earth resources between China, USA, Japan and the EU: An ecological niche approach," Resources Policy, Elsevier, vol. 82(C).
    2. Pesaran, M. Hashem & Timmermann, Allan, 2005. "Small sample properties of forecasts from autoregressive models under structural breaks," Journal of Econometrics, Elsevier, vol. 129(1-2), pages 183-217.
    3. Wei, Ping & Qi, Yinshu & Ren, Xiaohang & Gozgor, Giray, 2023. "The role of the COVID-19 pandemic in time-frequency connectedness between oil market shocks and green bond markets: Evidence from the wavelet-based quantile approaches," Energy Economics, Elsevier, vol. 121(C).
    4. Li, Xin & Su, Chi Wei, 2024. "Evaluating the impact of multiple uncertainty shocks on China's airline stocks volatility: A novel joint quantile perspective," Journal of Air Transport Management, Elsevier, vol. 121(C).
    5. Li, Jiaming & Ward, John K. & Tong, Jingnan & Collins, Lyle & Platt, Glenn, 2016. "Machine learning for solar irradiance forecasting of photovoltaic system," Renewable Energy, Elsevier, vol. 90(C), pages 542-553.
    6. Kyle Handley & Nuno Limão, 2018. "Policy Uncertainty, Trade, and Welfare: Theory and Evidence for China and the United States," World Scientific Book Chapters, in: Policy Externalities and International Trade Agreements, chapter 5, pages 123-175, World Scientific Publishing Co. Pte. Ltd..
    7. Gaviria, Jorge Felipe & Narváez, Gabriel & Guillen, Camilo & Giraldo, Luis Felipe & Bressan, Michael, 2022. "Machine learning in photovoltaic systems: A review," Renewable Energy, Elsevier, vol. 196(C), pages 298-318.
    8. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
    9. Su, Chi-Wei & Qin, Meng & Tao, Ran & Umar, Muhammad, 2020. "Financial implications of fourth industrial revolution: Can bitcoin improve prospects of energy investment?," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    10. Su, Chi-Wei & Yang, Shengyao & Dumitrescu Peculea, Adelina & Ioana Biţoiu, Teodora & Qin, Meng, 2024. "Energy imports in turbulent eras: Evidence from China," Energy, Elsevier, vol. 306(C).
    11. Donald W. K. Andrews, 2003. "Tests for Parameter Instability and Structural Change with Unknown Change Point: A Corrigendum," Econometrica, Econometric Society, vol. 71(1), pages 395-397, January.
    12. Andrews, Donald W K, 1993. "Tests for Parameter Instability and Structural Change with Unknown Change Point," Econometrica, Econometric Society, vol. 61(4), pages 821-856, July.
    13. Vesnic-Alujevic, Lucia & Nascimento, Susana & Pólvora, Alexandre, 2020. "Societal and ethical impacts of artificial intelligence: Critical notes on European policy frameworks," Telecommunications Policy, Elsevier, vol. 44(6).
    14. Qin, Meng & Wan, Yue & Dou, Junyi & Su, Chi Wei, 2024. "Artificial Intelligence: Intensifying or mitigating unemployment?," Technology in Society, Elsevier, vol. 79(C).
    15. Varaha Satra Bharath Kurukuru & Ahteshamul Haque & Mohammed Ali Khan & Subham Sahoo & Azra Malik & Frede Blaabjerg, 2021. "A Review on Artificial Intelligence Applications for Grid-Connected Solar Photovoltaic Systems," Energies, MDPI, vol. 14(15), pages 1-35, August.
    16. Sarah Bankins & Paul Formosa, 2023. "The Ethical Implications of Artificial Intelligence (AI) For Meaningful Work," Journal of Business Ethics, Springer, vol. 185(4), pages 725-740, July.
    17. Mahmudul Islam & Masud Rana Rashel & Md Tofael Ahmed & A. K. M. Kamrul Islam & Mouhaydine Tlemçani, 2023. "Artificial Intelligence in Photovoltaic Fault Identification and Diagnosis: A Systematic Review," Energies, MDPI, vol. 16(21), pages 1-18, November.
    18. Qin, Meng & Su, Ai-Hsuan & Li, Ruifeng & Su, Chi-Wei, 2024. "Speculation, climate or pandemic: Who drives the Chinese herbal medicine bubbles?," China Economic Review, Elsevier, vol. 87(C).
    19. Andrews, Donald W K & Ploberger, Werner, 1994. "Optimal Tests When a Nuisance Parameter Is Present Only under the Alternative," Econometrica, Econometric Society, vol. 62(6), pages 1383-1414, November.
    20. Balcilar, Mehmet & Ozdemir, Zeynel Abidin & Arslanturk, Yalcin, 2010. "Economic growth and energy consumption causal nexus viewed through a bootstrap rolling window," Energy Economics, Elsevier, vol. 32(6), pages 1398-1410, November.
    21. Ghazi Shukur & Panagiotis Mantalos, 2000. "A simple investigation of the Granger-causality test in integrated-cointegrated VAR systems," Journal of Applied Statistics, Taylor & Francis Journals, vol. 27(8), pages 1021-1031.
    22. Shinwari, Riazullah & Wang, Yangjie & Gozgor, Giray & Mousavi, Mahdi, 2024. "Does FDI affect energy consumption in the belt and road initiative economies? The role of green technologies," Energy Economics, Elsevier, vol. 132(C).
    23. Xiaohang Ren & Ya Xiao & Feng He & Giray Gozgor, 2024. "The contagion of extreme risks between fossil and green energy markets: evidence from China," Quantitative Finance, Taylor & Francis Journals, vol. 24(5), pages 627-642, May.
    24. Elham Alzain & Shaha Al-Otaibi & Theyazn H. H. Aldhyani & Ali Saleh Alshebami & Mohammed Amin Almaiah & Mukti E. Jadhav, 2023. "Revolutionizing Solar Power Production with Artificial Intelligence: A Sustainable Predictive Model," Sustainability, MDPI, vol. 15(10), pages 1-21, May.
    25. Buratti, Yoann & Javier, Gaia M.N. & Abdullah-Vetter, Zubair & Dwivedi, Priya & Hameiri, Ziv, 2024. "Machine learning for advanced characterisation of silicon photovoltaics: A comprehensive review of techniques and applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 202(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yi WANG & Yiting XU & Yufei ZHONG, 2025. "Does Artificial Intelligence Invariably Enhance ESG Performance?," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 24-40, July.
    2. Qin, Meng & Su, Chi-Wei & Lobonţ, Oana-Ramona & Umar, Muhammad, 2023. "Blockchain: A carbon-neutral facilitator or an environmental destroyer?," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 604-615.
    3. Umar, Muhammad & Qin, Meng & Su, Chi-Wei, 2025. "Exploring the hedging performance of non-fungible token: Novel evidence from world uncertainty," Research in International Business and Finance, Elsevier, vol. 77(PA).
    4. Sun, Yanpeng & Song, Yuru & Long, Chi & Qin, Meng & Lobonţ, Oana-Ramona, 2023. "How to improve global environmental governance? Lessons learned from climate risk and climate policy uncertainty," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1666-1676.
    5. Wang, Xinghua & Lee, Zhengzheng & Wu, Shuang & Qin, Meng, 2023. "Exploring the vital role of geopolitics in the oil market: The case of Russia," Resources Policy, Elsevier, vol. 85(PB).
    6. Qin, Meng & Hu, Wei & Qi, Xinzhou & Chang, Tsangyao, 2024. "Do the benefits outweigh the disadvantages? Exploring the role of artificial intelligence in renewable energy," Energy Economics, Elsevier, vol. 131(C).
    7. Chen, Yan & Zhang, Ruiqian & Lyu, Jiayi & Hou, Yuqi, 2024. "AI and Nuclear: A perfect intersection of danger and potential?," Energy Economics, Elsevier, vol. 133(C).
    8. Meng QIN, 2024. "The essential role of U.S.-China tensions: a fresh insight into the gold market," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(641), W), pages 227-246, Winter.
    9. Qin, Meng & Zhu, Yujie & Xie, Xin & Shao, Xuefeng & Lobonţ, Oana-Ramona, 2024. "The impact of climate risk on technological progress under the fourth industrial era," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    10. Qin, Meng & Su, Yun Hsuan & Zhao, Zhengtang & Mirza, Nawazish, 2023. "The politics of climate: Does factionalism impede U.S. carbon neutrality?," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 954-966.
    11. Su, Chi Wei & Shao, Xuefeng & Jia, Zhijie & Nepal, Rabindra & Umar, Muhammad & Qin, Meng, 2023. "The rise of green energy metal: Could lithium threaten the status of oil?," Energy Economics, Elsevier, vol. 121(C).
    12. Nyakabawo, Wendy & Miller, Stephen M. & Balcilar, Mehmet & Das, Sonali & Gupta, Rangan, 2015. "Temporal causality between house prices and output in the US: A bootstrap rolling-window approach," The North American Journal of Economics and Finance, Elsevier, vol. 33(C), pages 55-73.
    13. Muhammad Irfan & Tomiwa Sunday Adebayo & Jinyang Cai & Hazar Dördüncü & Farrukh Shahzad, 2024. "Analyzing the mechanism between nuclear energy consumption and carbon emissions: Fresh insights from novel bootstrap rolling-window approach," Energy & Environment, , vol. 35(2), pages 754-778, March.
    14. Yingying Xu & Zhi‐Xin Liu & Chi‐Wei Su & Jaime Ortiz, 2019. "Gold and inflation: Expected inflation effect or carrying cost effect?," International Finance, Wiley Blackwell, vol. 22(3), pages 380-398, December.
    15. Mohamed Sahbi Nakhli & Abderrazak Dhaoui & Julien Chevallier, 2022. "Bootstrap rolling-window Granger causality dynamics between momentum and sentiment: implications for investors," Annals of Finance, Springer, vol. 18(2), pages 267-283, June.
    16. Qin, Meng & Su, Chi-Wei & Tao, Ran, 2021. "BitCoin: A new basket for eggs?," Economic Modelling, Elsevier, vol. 94(C), pages 896-907.
    17. Su, Chi-Wei & Wang, Dan & Mirza, Nawazish & Zhong, Yifan & Umar, Muhammad, 2023. "The impact of consumer confidence on oil prices," Energy Economics, Elsevier, vol. 124(C).
    18. Wei Su, Chi & Yue Song, Xin & Qin, Meng & Lobonţ, Oana-Ramona & Umar, Muhammad, 2024. "Optimistic or pessimistic: How do investors impact the green bond market?," The North American Journal of Economics and Finance, Elsevier, vol. 74(C).
    19. Xiao-lin Li & Mehmet Balcilar & Rangan Gupta & Tsangyao Chang, 2016. "The Causal Relationship Between Economic Policy Uncertainty and Stock Returns in China and India: Evidence from a Bootstrap Rolling Window Approach," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 52(3), pages 674-689, March.
    20. Qian Zhao & Chi-Wei Su & Jun-Mo Guo, 2024. "Does Technological Innovation Promote Renewable Energy Investment?," SAGE Open, , vol. 14(1), pages 21582440241, February.

    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:eee:eneeco:v:145:y:2025:i:c:s0140988325002476. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    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.