Chapter 13: Artificial Intelligence, Economic Development, and Environmental Degradation in Major Asian Economies: A Comparison of Carbon Combustion and Ecological Footprint

In recent years, artificial intelligence (AI) has attracted much attention from experts due to its potential to drive a new wave of technological transformation with innovation and sustainable economic upheaval through environmental protection. This study investigates the effect of AI, economic development (GDPpc), renewable energy generation (REG), and inward foreign direct investment (IFDI) on carbon emission from industrial combustion (CO2Eic) and ecological footprint (EFT) in an Asian context from 2013 to 2023 in the long and short run. Confirming the result of the pooled mean group auto-regressive distributed lag (PMG/ARDL) model, the panel fully modified least squares method (FMOLS), and dynamic least squares (DOLS) attested that combustion significantly shortens due to AI (except in South Korea) and REG (except in Japan and Indonesia) over time. The study revealed that development and IFDI (except China and Japan) have significantly positive contributions to combustion in major Asian economies in the short and long run. The outcomes also confirmed that AI in the case of India and Japan subtract combustion in the short run, whereas it increased for others, and REG for Japan, South Korea, and Indonesia reduced combustion significantly in the short run. It is also evident that AI and IFDI are indeterminate to the EFTs in major Asian economies. The study confirmed that development improved the EFT, whereas REG negatively impacted overtime to footprint except for Japan. The policymakers of the respective economy should encourage the development and use of AI and enact unique regulations for lowering carbon emission from industrial combustion and ennobling sustainable economic development.