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About this paper
Abdullah Al Abrar Chowdhury, Azizul Hakim Rafi, Adita Sultana, Abdulla All Noman
A study explores the long-run and short-run impacts of AI innovation, economic growth, energy use, foreign direct investment, and urbanization on CO2 emissions in the United States from 1990-2022. It reveals AI innovation significantly reduces CO2 emissions (e.g., a 1% rise in AI investment leads to a 0.054% long-run decrease), while economic growth, energy consumption, FDI, and urbanization contribute to their increase.
Key insights
- AI innovation consistently demonstrates a negative and statistically significant impact on CO2 emissions in the USA, indicating its potential to mitigate environmental degradation.
- Economic growth, energy consumption, foreign direct investment, and urbanization all exhibit a positive and statistically significant relationship with increased CO2 emissions, suggesting their current patterns exacerbate environmental issues in the US.
- The model's robustness and stability were confirmed through various diagnostic and cointegration tests, enhancing the credibility of the identified long-run and short-run relationships.
Summary by alphaXiv.
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