Sustainable Development: Perspectives From Artificial Intelligence, Green Bonds, Green Economy, and Energy Innovation

In an era of global uncertainty and challenges, it is important to establish integration between environmental, economic, and technological strategies to achieve sustainable development. In this regard, this study investigates the synergistic roles of artificial intelligence (AI), green economy, clean energy innovation, and green finance in achieving sustainable development. In contrast to conventional methodologies, the present research employs a novel approach: R2 decomposed connectedness and portfolio analysis, using daily data from February 27, 2018, to September 9, 2023. These approaches measure how much of a shock to one variable is explained by shocks to others, thereby identifying the net transmitters and receivers of risks and shocks. The findings reveal an average total connectedness index of 55% among these variables, with significant peaks observed during periods of heightened instability, such as the COVID‐19 pandemic and the Russia‐Ukraine conflict. A decomposition of this connectedness shows that 29% stems from contemporaneous interactions, while 26% is attributable to lagged effects. Investment portfolios incorporating eco‐friendly assets, AI‐focused securities, and clean energy tokens exhibit strong hedging effectiveness, particularly during volatile market conditions. This underscores the capacity of AI, green economic principles, clean energy innovation, and green finance to collectively facilitate sustainable development and mitigate environmental emissions and climate impacts. The study recommends policy and practical implications focusing on green bonds, financial technology (Fintech), and energy transition across various levels.