Unveiling the Role of Artificial Intelligence and Green Finance in Achieving Carbon Neutrality in Pakistan: An ARDL Model Analysis
Year: 2025
Type: article
Abstract: Carbon neutrality has become a worldwide necessity in combating the negative climate change problem, and it must adopt new technological and financial resources to accomplish this goal. It examines how Artificial Intelligence (AI) and Green Finance (GF) together can increase the possibility of Pakistan, a developing nation where energy requirements are growing swiftly, and the environment is starting to become increasingly challenging, can achieve carbon neutrality. The study uses the Autoregressive Distributed Lag (ARDL) model to examine both the long-run and short-run impacts of AI adoption and green financial initiatives on the reduction of carbon emissions using data from 1990 to 2023. The results demonstrate that AI-based technologies play a key role in improving energy efficiency and monitoring of emissions, and green finance also negatively impact the environmental degradation in Pakistan. The policy suggestions are concerned with the implementation of AI solutions alongside financial incentives to make Pakistan a carbon-neutral economy faster. The research adds to the body of literature through the integration of technology innovation and financial processes into an analytical holistic approach and provides practical implications to policymakers, investors and environmental stakeholders.
DOI: 10.59075/ept5vz23
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7117686309