IDEAS home Printed from https://ideas.repec.org/a/wly/sustdv/v34y2026i1p362-375.html

Artificial Intelligence for Sustainable Development: Quantile Evidence From FinTech, Human Capital, and Green Energy in G7 Economies

Author

Listed:
  • Xinyang Zhao
  • Aswin Aaron

Abstract

The G7 nations face a dual challenge of sustaining technological leadership while addressing environmental degradation (ED), energy transitions, and social inclusiveness. Artificial Intelligence (AI) has become a critical driver of digital and green transformations, yet its determinants remain unevenly understood across advanced economies. This study investigates how financial technology (FinTech), economic growth (EG), human capital (HC), renewable energy consumption (RENC), and ED shape AI advancement in the G7 from 2000 to 2023. Drawing on endogenous growth theory, technology–environment evolution theory, and innovation diffusion theory, we employ random effects (RE), method of moments quantile regression (MMQR), and generalized method of moments (GMM) to capture heterogeneity, cross‐sectional dependence, slope variation, and endogeneity. The findings reveal distributional asymmetries. FinTech and EG exert strong positive impacts on AI adoption, with FinTech especially influential at the early and middle stages. HC shows a nonlinear effect, insignificant at lower quantiles but turning negative at higher ones, reflecting skill mismatches in mature AI economies. RENC enhances AI at lower quantiles, supporting green digital transitions, but its effect weakens at higher levels, suggesting saturation. ED exerts a persistent negative influence, underscoring environmental constraints on digital expansion. Robustness tests using GMM confirm these relationships. This study's novelty lies in integrating environmental, financial, and HC determinants into a unified sustainability framework for AI adoption in the G7, uncovering heterogeneous and nonlinear effects. Policy implications include fostering inclusive FinTech ecosystems, reorienting education toward digital readiness, and scaling renewable‐powered AI infrastructures to align growth with SDG 7, SDG 9, and SDG 13.

Suggested Citation

  • Xinyang Zhao & Aswin Aaron, 2026. "Artificial Intelligence for Sustainable Development: Quantile Evidence From FinTech, Human Capital, and Green Energy in G7 Economies," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(1), pages 362-375, February.
  • Handle: RePEc:wly:sustdv:v:34:y:2026:i:1:p:362-375
    DOI: 10.1002/sd.70268
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sd.70268
    Download Restriction: no

    File URL: https://libkey.io/10.1002/sd.70268?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
    ---><---

    More about this item

    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:wly:sustdv:v:34:y:2026:i:1:p:362-375. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1719 .

    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.