Governing the Green Transition: The Role of Artificial Intelligence, Green Finance, and Institutional Governance in Achieving the SDGs Through Renewable Energy

Irina Georgescu (), Ayşe Meriç Yazıcı, Vildan Bayram, Mesut Öztırak, Ayşegül Toy and Mesut Dogan
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Irina Georgescu: Department of Economic Informatics and Cybernetics, Bucharest University of Economics, 010374 Bucharest, Romania
Ayşe Meriç Yazıcı: Department of International Trade and Business, Istanbul Gelisim University, 34310 Istanbul, Türkiye
Vildan Bayram: Department of Business Management, Istanbul Aydin University, 34295 Istanbul, Türkiye
Mesut Öztırak: Department of Aviation Management, Istanbul Medipol University, 34815 Istanbul, Türkiye
Ayşegül Toy: Department of Finance and Banking, Sivas Cumhuriyet University, 58140 Sivas, Türkiye
Mesut Dogan: Department of Finance, Banking and Insurance, Bilecik Seyh Edebali University, 11210 Bilecik, Türkiye

Sustainability, 2025, vol. 17, issue 12, 1-21

Abstract: This study examines the effects of artificial intelligence investments, green financing, government stability, and institutional quality on renewable energy consumption from a multidimensional perspective. Using panel data for the period 2014–2023, 15 leading countries in the field of green financing were included in the analysis. The Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) method was preferred in the empirical analysis; robustness tests were conducted with Fully Modified OLS (FMOLS) and Dynamic OLS (DOLS) estimators to assess the reliability of the findings. According to the findings, artificial intelligence investments have a significant and positive impact on renewable energy consumption in both the short and long term. Similarly, green financing contributes strongly and statistically significantly by enhancing the feasibility of clean energy projects. Furthermore, stable governments and the effective functioning of institutional structures support this process; both factors are observed to have a positive effect on renewable energy consumption. This study offers concrete policy recommendations in line with the United Nations sustainable development goals (SDGs) 7, 9, 13, and 16.

Keywords: artificial intelligence investments; green finance; renewable energy; government stability; sustainable development goals (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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