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The two-way street: How AI and clean energy affect each other

Author

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  • Lyu, Jiayi
  • Gao, Zixuan
  • Li, Yanfeng
  • Zhang, Qiang

Abstract

In an era characterized by rapid advancements in artificial intelligence (AI) and a significant shift towards clean energy (CE), this study investigates the symbiotic relationship between AI and CE, examining how each influences the other. Utilizing both both full-sample and sub-sample analyses, the research delineates the evolving interplay between AI technologies and CE within the Chinese context. The empirical results indicate that AI exerts a dual influence on CE: it not only provides substantial technological support for the development and transition towards CE but also potentially increases overall energy consumption due to its intensive energy requirements. Conversely, China's intensified focus on CE presents new avenues for the expansion and deployment of AI technologies. These findings shed light on the dynamic interconnection between AI and CE and offer strategic recommendations to facilitate the global progression towards sustainable energy.

Suggested Citation

  • Lyu, Jiayi & Gao, Zixuan & Li, Yanfeng & Zhang, Qiang, 2025. "The two-way street: How AI and clean energy affect each other," Energy Economics, Elsevier, vol. 147(C).
    • Handle: RePEc:eee:eneeco:v:147:y:2025:i:c:s0140988325003901
    DOI: 10.1016/j.eneco.2025.108566
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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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