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Unravelling Dynamics And Connectedness: Distinguishing The Influence Of Sustainable Finance And Artificial Intelligence On Energy Sustainability In China

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  • Chi Wei Su

    (Wuchang University of Technology, China)

  • Meng Qin

    (Wuchang University of Technology, China)

Abstract

This article examines the significant roles of sustainable finance and Artificial Intelligence (AI) in advancing China’s energy sustainability by employing the TVP-VAR-SV model to track dynamic interactions among the Green Bond Index (GBI), New Economy Index (NEI), and Energy-related Uncertainty Index (EUI). Findings indicate that both GBI and NEI reduce EUI, with GBI exerting a stronger influence due to its direct link to sustainable finance, underscoring its role in mitigating energy market uncertainties. EUI, however, negatively affects GBI, revealing that high energy uncertainty may impede sustainable finance progress. Interestingly, EUI has a mixed effect on NEI, suggesting that energy uncertainties can either drive or hinder AI development. GBI and NEI show a positive relationship, moving in tandem, emphasizing how sustainable finance and AI could collectively address energy challenges amid climate concerns and technological advancement.

Suggested Citation

  • Chi Wei Su & Meng Qin, 2024. "Unravelling Dynamics And Connectedness: Distinguishing The Influence Of Sustainable Finance And Artificial Intelligence On Energy Sustainability In China," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 27(4), pages 741-766, December.
    • Handle: RePEc:idn:journl:v:27:y:2024:i:4h:p:741-766
    DOI: https://doi.org/10.59091/2460-9196.2418
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    References listed on IDEAS

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    Cited by:

    1. Ma, Chao-Qun & Liu, Xukang & Klein, Tony & Ren, Yi-Shuai, 2025. "Decoding the nexus: How fintech and AI stocks drive the future of sustainable finance," International Review of Economics & Finance, Elsevier, vol. 98(C).

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    Keywords

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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
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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