IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v145y2025ics0140988325003159.html
   My bibliography  Save this article

Can artificial intelligence reduce energy vulnerability? Evidence from an international perspective

Author

Listed:
  • Gao, Lan
  • Wang, Jing

Abstract

Due to the global energy supply and demand conflicts, climate change, and geopolitical disputes, there is a growing focus on the vulnerability of energy system. Practically, the potential of artificial intelligence (AI) in mitigating energy vulnerability has been noticed. This paper employs panel data spanning 20 years (2000–2019) from 52 countries to examine the relationship and mechanisms between AI and energy vulnerability, and further examines the potential threshold effects and heterogeneity. The findings are fourfold. First, AI emerges as an effective tool in mitigating energy vulnerability. Second, mechanism analyses demonstrate that AI reduces energy vulnerability via improving the government governance effectiveness, promoting green technology innovation and facilitating industrial structure upgrading. Third, threshold effect tests show that when economic growth and financial development reach higher threshold levels, the mitigation effect of AI on energy vulnerability becomes more pronounced. Lastly, heterogeneity results indicate that regions with higher income levels and better digital infrastructure experience a more significant reduction in energy vulnerability due to the full utilization of AI. These findings provide valuable insights for policymakers and energy organizations seeking to reduce energy vulnerability and ensure energy security.

Suggested Citation

  • Gao, Lan & Wang, Jing, 2025. "Can artificial intelligence reduce energy vulnerability? Evidence from an international perspective," Energy Economics, Elsevier, vol. 145(C).
    • Handle: RePEc:eee:eneeco:v:145:y:2025:i:c:s0140988325003159
    DOI: 10.1016/j.eneco.2025.108491
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988325003159
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2025.108491?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. Florini, Ann & Sovacool, Benjamin K., 2009. "Who governs energy? The challenges facing global energy governance," Energy Policy, Elsevier, vol. 37(12), pages 5239-5248, December.
    2. Boikos, Spyridon & Panagiotidis, Theodore & Voucharas, Georgios, 2022. "Financial development, reforms and growth," Economic Modelling, Elsevier, vol. 108(C).
    3. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    4. Cheng, Chih-Yang & Chien, Mei-Se & Lee, Chien-Chiang, 2021. "ICT diffusion, financial development, and economic growth: An international cross-country analysis," Economic Modelling, Elsevier, vol. 94(C), pages 662-671.
    5. Du, Juntao & Shen, Zhiyang & Song, Malin & Vardanyan, Michael, 2023. "The role of green financing in facilitating renewable energy transition in China: Perspectives from energy governance, environmental regulation, and market reforms," Energy Economics, Elsevier, vol. 120(C).
    6. Chi Wei Su & Shuqi Lv & Meng Qin & Diego Norena-Chavez, 2024. "Uncertainty and Credit: The Chicken or the Egg Causality Dilemma," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 60(11), pages 2560-2578, September.
    7. Su, Chi Wei & Song, Xin Yue & Dou, Junyi & Qin, Meng, 2025. "Fossil fuels or renewable energy? The dilemma of climate policy choices," Renewable Energy, Elsevier, vol. 238(C).
    8. Di Vaio, Assunta & Palladino, Rosa & Hassan, Rohail & Escobar, Octavio, 2020. "Artificial intelligence and business models in the sustainable development goals perspective: A systematic literature review," Journal of Business Research, Elsevier, vol. 121(C), pages 283-314.
    9. Ho, Kung-Cheng & Yan, Cheng & Gozgor, Giray & Gu, Yan, 2024. "Energy related public environmental concerns and intra-firm pay gap in polluting enterprises: Evidence from China," Energy Economics, Elsevier, vol. 130(C).
    10. Haefner, Naomi & Wincent, Joakim & Parida, Vinit & Gassmann, Oliver, 2021. "Artificial intelligence and innovation management: A review, framework, and research agenda✰," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    11. Genave, Anna & Blancard, Stéphane & Garabedian, Sabine, 2020. "An assessment of energy vulnerability in Small Island Developing States," Ecological Economics, Elsevier, vol. 171(C).
    12. Nepal, Rabindra & Zhao, Xiaomeng & Liu, Yang & Dong, Kangyin, 2024. "Can green finance strengthen energy resilience? The case of China," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    13. 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).
    14. Su, Chi-Wei & Yuan, Xi & Umar, Muhammad & Lobonţ, Oana-Ramona, 2022. "Does technological innovation bring destruction or creation to the labor market?," Technology in Society, Elsevier, vol. 68(C).
    15. 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).
    16. 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).
    17. Li, Ge & Wang, Xiaoyu, 2024. "Energy quota trading policy and energy efficiency: The role of government supervision and public participation," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    18. Wang, Zongrun & Cao, Xuxin & Ren, Xiaohang & Gozgor, Giray, 2024. "Digital finance and the energy transition: Evidence from Chinese prefecture-level cities," Global Finance Journal, Elsevier, vol. 61(C).
    19. Cao, Fangzhi & Su, Chi-Wei & Qin, Meng & Moldovan, Nicoleta-Claudia, 2024. "The investment of renewable energy: Is green bond a safe-haven to hedge U.S. monetary policy uncertainty?," Energy, Elsevier, vol. 307(C).
    20. Dong, Kangyin & Liu, Yang & Wang, Jianda & Dong, Xiucheng, 2024. "Is the digital economy an effective tool for decreasing energy vulnerability? A global case," Ecological Economics, Elsevier, vol. 216(C).
    21. Lin, Boqiang & Raza, Muhammad Yousaf, 2020. "Coal and economic development in Pakistan: A necessity of energy source," Energy, Elsevier, vol. 207(C).
    22. Qin, Meng & Wan, Yue & Dou, Junyi & Su, Chi Wei, 2024. "Artificial Intelligence: Intensifying or mitigating unemployment?," Technology in Society, Elsevier, vol. 79(C).
    23. Mariani, Marcello M. & Machado, Isa & Magrelli, Vittoria & Dwivedi, Yogesh K., 2023. "Artificial intelligence in innovation research: A systematic review, conceptual framework, and future research directions," Technovation, Elsevier, vol. 122(C).
    24. Jahanger, Atif & Usman, Muhammad & Murshed, Muntasir & Mahmood, Haider & Balsalobre-Lorente, Daniel, 2022. "The linkages between natural resources, human capital, globalization, economic growth, financial development, and ecological footprint: The moderating role of technological innovations," Resources Policy, Elsevier, vol. 76(C).
    25. Dong, Kangyin & Dong, Xiucheng & Jiang, Qingzhe & Zhao, Jun, 2021. "Assessing energy resilience and its greenhouse effect: A global perspective," Energy Economics, Elsevier, vol. 104(C).
    26. Rammer, Christian & Fernández, Gastón P. & Czarnitzki, Dirk, 2022. "Artificial intelligence and industrial innovation: Evidence from German firm-level data," Research Policy, Elsevier, vol. 51(7).
    27. Calver, Philippa & Simcock, Neil, 2021. "Demand response and energy justice: A critical overview of ethical risks and opportunities within digital, decentralised, and decarbonised futures," Energy Policy, Elsevier, vol. 151(C).
    28. 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).
    29. Usman, Muhammad & Balsalobre-Lorente, Daniel, 2022. "Environmental concern in the era of industrialization: Can financial development, renewable energy and natural resources alleviate some load?," Energy Policy, Elsevier, vol. 162(C).
    30. Gozgor, Giray & Ho, Thang & Li, Jing & Mousavi, Mohammad Mahdi, 2024. "The impact of energy diversification on firm performance: The moderating role of corporate social responsibility," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    31. Shahbaz, Muhammad & Wang, Jianda & Dong, Kangyin & Zhao, Jun, 2022. "The impact of digital economy on energy transition across the globe: The mediating role of government governance," Renewable and Sustainable Energy Reviews, Elsevier, vol. 166(C).
    32. Zhang, Weike & Fan, Hongxia & Zhao, Qiwei, 2023. "Seeing green: How does digital infrastructure affect carbon emission intensity?," Energy Economics, Elsevier, vol. 127(PB).
    33. Tehreem Fatima & Umer Shahzad & Lianbiao Cui, 2021. "Renewable and nonrenewable energy consumption, trade and CO2 emissions in high emitter countries: does the income level matter?," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 64(7), pages 1227-1251, June.
    34. Wang, Shanyong & Zhang, Rongwei & Wan, Liang & Chen, Jiusong, 2023. "Has Central Government Environmental Protection Interview Improved Air Quality in China?," Ecological Economics, Elsevier, vol. 206(C).
    35. Wang, Zongrun & Zhang, Taiyu & Ren, Xiaohang & Shi, Yukun, 2024. "AI adoption rate and corporate green innovation efficiency: Evidence from Chinese energy companies," Energy Economics, Elsevier, vol. 132(C).
    36. Wang, Juan & Zhang, Sulan & Zhang, Qingjun, 2021. "The relationship of renewable energy consumption to financial development and economic growth in China," Renewable Energy, Elsevier, vol. 170(C), pages 897-904.
    37. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2010. "The worldwide governance indicators : methodology and analytical issues," Policy Research Working Paper Series 5430, The World Bank.
    38. Bardazzi, Rossella & Charlier, Dorothée & Legendre, Berangère & Pazienza, Maria Grazia, 2023. "Energy vulnerability in Mediterranean countries: A latent class analysis approach," Energy Economics, Elsevier, vol. 126(C).
    39. Song, Yuegang & Wang, Ziqi & Song, Changqing & Wang, Jianhua & Liu, Rong, 2024. "Impact of artificial intelligence on renewable energy supply chain vulnerability: Evidence from 61 countries," Energy Economics, Elsevier, vol. 131(C).
    40. Shahbaz, Muhammad & Topcu, Betül Altay & Sarıgül, Sevgi Sümerli & Vo, Xuan Vinh, 2021. "The effect of financial development on renewable energy demand: The case of developing countries," Renewable Energy, Elsevier, vol. 178(C), pages 1370-1380.
    41. Chi Wei Su & Xiaofeng Liu & Meng Qin & Muhammad Umar, 2024. "Is the Uncertainty Economic Policy an Impediment or an Impetus to Technological Innovation?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 60(11), pages 2579-2593, September.
    42. Hou, Fang & Khan, Muhammad Amir & Hayat, Malik Tahir, 2024. "Empirical linkages among financial development, digital infrastructure, energy transition and natural resources footprints in BRICS region," Resources Policy, Elsevier, vol. 90(C).
    43. Kim, SangYoun & Heo, SungKu & Nam, KiJeon & Woo, TaeYong & Yoo, ChangKyoo, 2023. "Flexible renewable energy planning based on multi-step forecasting of interregional electricity supply and demand: Graph-enhanced AI approach," Energy, Elsevier, vol. 282(C).
    44. Alvarado, Rafael & Deng, Qiushi & Tillaguango, Brayan & Méndez, Priscila & Bravo, Diana & Chamba, José & Alvarado-Lopez, María & Ahmad, Munir, 2021. "Do economic development and human capital decrease non-renewable energy consumption? Evidence for OECD countries," Energy, Elsevier, vol. 215(PB).
    45. Lee, Chien-Chiang & Qin, Shuai & Li, Yaya, 2022. "Does industrial robot application promote green technology innovation in the manufacturing industry?," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    46. Shujun Chao & Shanyong Wang & Haidong Li & Shu Yang, 2023. "The power of culture: Does Confucian culture contribute to corporate environmental information disclosure?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2435-2456, September.
    47. Qin, Meng & Mirza, Nawazish & Su, Chi-Wei & Umar, Muhammad, 2023. "Exploring Bubbles in the Digital Economy: The Case of China," Global Finance Journal, Elsevier, vol. 57(C).
    48. Liu, Yang & Dong, Kangyin & Jiang, Qingzhe, 2023. "Assessing energy vulnerability and its impact on carbon emissions: A global case," Energy Economics, Elsevier, vol. 119(C).
    49. 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).
    50. Gatto, Andrea & Drago, Carlo, 2020. "Measuring and modeling energy resilience," Ecological Economics, Elsevier, vol. 172(C).
    51. Pan, Yuling & Dong, Feng, 2023. "The impacts of energy finance policies and renewable energy subsidy on energy vulnerability under carbon peaking scenarios," Energy, Elsevier, vol. 273(C).
    52. Mangla, Sachin Kumar & Srivastava, Praveen Ranjan & Eachempati, Prajwal & Tiwari, Aviral Kumar, 2024. "Exploring the impact of key performance factors on energy markets: From energy risk management perspectives," Energy Economics, Elsevier, vol. 131(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. Niu, Xiaotong & Lin, Changao & He, Shanshan & Yang, Youcai, 2025. "Artificial intelligence and enterprise pollution emissions: From the perspective of energy transition," Energy Economics, Elsevier, vol. 144(C).
    2. Dong, Kangyin & Liu, Yang & Wang, Jianda & Dong, Xiucheng, 2024. "Is the digital economy an effective tool for decreasing energy vulnerability? A global case," Ecological Economics, Elsevier, vol. 216(C).
    3. Dong, Zequn & Tan, Chaodan & Ma, Biao & Ning, Zhaoshuo, 2024. "The impact of artificial intelligence on the energy transition: The role of regulatory quality as a guardrail, not a wall," Energy Economics, Elsevier, vol. 140(C).
    4. Zhai, Minhan & Wu, Wenqing & Tsai, Sang-Bing, 2025. "The effects of Artificial intelligence orientation on inefficient investment: Firm-level evidence from China's energy enterprises," Energy Economics, Elsevier, vol. 141(C).
    5. Cao, Fangzhi & Su, Chi-Wei & Qin, Meng & Moldovan, Nicoleta-Claudia, 2024. "The investment of renewable energy: Is green bond a safe-haven to hedge U.S. monetary policy uncertainty?," Energy, Elsevier, vol. 307(C).
    6. Zhang, Yingnan & Hu, Wei & Tao, Yirui & Zhang, Bin, 2025. "How does smart artificial intelligence influence energy system resilience? Evidence from energy vulnerability assessments in G20 countries," Energy, Elsevier, vol. 314(C).
    7. Zhang, Zhenhua & Wu, Huangbin & Zhang, Yunpeng & Hu, Shilei & Pan, Yuxi & Feng, Yanchao, 2024. "Does digital global value chain participation reduce energy resilience? Evidence from 49 countries worldwide," Technological Forecasting and Social Change, Elsevier, vol. 208(C).
    8. Ran, Qiying & Yang, Xiaodong & Yan, Hongchuan & Xu, Yang & Cao, Jianhong, 2023. "Natural resource consumption and industrial green transformation: Does the digital economy matter?," Resources Policy, Elsevier, vol. 81(C).
    9. Huo, Da & Gu, Wenjia & Guo, Dongmei & Tang, Aidi, 2024. "The service trade with AI and energy efficiency: Multiplier effect of the digital economy in a green city by using quantum computation based on QUBO modeling," Energy Economics, Elsevier, vol. 140(C).
    10. Li, Xin & Li, Shiyuan & Cao, Jifeng & Spulbar, Andrei Cristian, 2025. "Does artificial intelligence improve energy efficiency? Evidence from provincial data in China," Energy Economics, Elsevier, vol. 142(C).
    11. Su, Chi-Wei & Wu, Ying & Qin, Meng, 2025. "Preserving energy security: Can renewable energy withstand the energy-related uncertainty risk?," Energy, Elsevier, vol. 320(C).
    12. Baudino, Marco, 2024. "Oil rents, renewable energy and the role of financial development: Evidence from OPEC+ members," Resources Policy, Elsevier, vol. 99(C).
    13. Ding, Tao & Li, Hao & Liu, Li & Feng, Kui, 2024. "An inquiry into the nexus between artificial intelligence and energy poverty in the light of global evidence," Energy Economics, Elsevier, vol. 136(C).
    14. Dong, Kangyin & Jiang, Qingzhe & Liu, Yang & Shen, Zhiyang & Vardanyan, Michael, 2024. "Is energy aid allocated fairly? A global energy vulnerability perspective," World Development, Elsevier, vol. 173(C).
    15. 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).
    16. Yang, Shengyao & Zhu, Meng Nan & Yu, Haiyan, 2024. "Are artificial intelligence and blockchain the key to unlocking the box of clean energy?," Energy Economics, Elsevier, vol. 134(C).
    17. Li, Cong & Zhang, Yue & Liu, Xihua & Sun, Jiawen, 2025. "Does artificial intelligence promote green technology innovation in the energy industry?," Energy Economics, Elsevier, vol. 144(C).
    18. 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).
    19. Zhu, Qingyuan & Sun, Chenhao & Xu, Chengzhen & Geng, Qianqian, 2025. "The impact of artificial intelligence on global energy vulnerability," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 15-27.
    20. Hwang, Young Kyu & Sánchez Díez, Ángeles, 2024. "Renewable energy transition and green growth nexus in Latin America," Renewable and Sustainable Energy Reviews, Elsevier, vol. 198(C).

    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:s0140988325003159. 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.