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Governing the Green Transition: The Role of Artificial Intelligence, Green Finance, and Institutional Governance in Achieving the SDGs Through Renewable Energy

Author

Listed:
  • Irina Georgescu

    (Department of Economic Informatics and Cybernetics, Bucharest University of Economics, 010374 Bucharest, Romania)

  • Ayşe Meriç Yazıcı

    (Department of International Trade and Business, Istanbul Gelisim University, 34310 Istanbul, Türkiye)

  • Vildan Bayram

    (Department of Business Management, Istanbul Aydin University, 34295 Istanbul, Türkiye)

  • Mesut Öztırak

    (Department of Aviation Management, Istanbul Medipol University, 34815 Istanbul, Türkiye)

  • Ayşegül Toy

    (Department of Finance and Banking, Sivas Cumhuriyet University, 58140 Sivas, Türkiye)

  • Mesut Dogan

    (Department of Finance, Banking and Insurance, Bilecik Seyh Edebali University, 11210 Bilecik, Türkiye)

Abstract

This study examines the effects of artificial intelligence investments, green financing, government stability, and institutional quality on renewable energy consumption from a multidimensional perspective. Using panel data for the period 2014–2023, 15 leading countries in the field of green financing were included in the analysis. The Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) method was preferred in the empirical analysis; robustness tests were conducted with Fully Modified OLS (FMOLS) and Dynamic OLS (DOLS) estimators to assess the reliability of the findings. According to the findings, artificial intelligence investments have a significant and positive impact on renewable energy consumption in both the short and long term. Similarly, green financing contributes strongly and statistically significantly by enhancing the feasibility of clean energy projects. Furthermore, stable governments and the effective functioning of institutional structures support this process; both factors are observed to have a positive effect on renewable energy consumption. This study offers concrete policy recommendations in line with the United Nations sustainable development goals (SDGs) 7, 9, 13, and 16.

Suggested Citation

  • Irina Georgescu & Ayşe Meriç Yazıcı & Vildan Bayram & Mesut Öztırak & Ayşegül Toy & Mesut Dogan, 2025. "Governing the Green Transition: The Role of Artificial Intelligence, Green Finance, and Institutional Governance in Achieving the SDGs Through Renewable Energy," Sustainability, MDPI, vol. 17(12), pages 1-21, June.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:12:p:5538-:d:1680032
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