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Harnessing artificial intelligence for environmental protection: Smart air quality management under oil price fluctuations

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  • Qin, Meng
  • Shao, Xuefeng
  • Zhu, Yujie
  • Lin, Cheng-To

Abstract

Investigating the capacity of artificial intelligence (AI) to enhance air quality represents a critical research area for achieving sustainable development goals. This study employs a mixed-frequency vector autoregression (MF-VAR) model to examine the impact of AI on U.S. carbon emission (CE) from the first week of June 2018 through the fourth week of July 2024, while controlling for oil market dynamics. The MF-VAR impulse responses reveal that AI has an initial positive impact on CE, which subsequently transitions to an adverse effect, and it turns positive again at the fifth or sixth period. The increase-decrease-rebound effect of AI on CE indicates that harnessing AI for cleaner air presents both opportunities and challenges. Furthermore, the analyses based on seasonally adjusted CE, expanded control variables, and an alternative mixed-frequency model confirm the robustness of our empirical analyses. In the context of escalating climate risks, our findings underscore the need for an integrated policy framework that harnesses the potential of AI for cleaner air while mitigating its environmental footprint.

Suggested Citation

  • Qin, Meng & Shao, Xuefeng & Zhu, Yujie & Lin, Cheng-To, 2025. "Harnessing artificial intelligence for environmental protection: Smart air quality management under oil price fluctuations," Energy Economics, Elsevier, vol. 151(C).
    • Handle: RePEc:eee:eneeco:v:151:y:2025:i:c:s0140988325007194
    DOI: 10.1016/j.eneco.2025.108892
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    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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