Artificial intelligence for sustainable energy: Mitigating global energy vulnerability through government effectiveness

This study explores the impact of artificial intelligence (AI) on achieving Sustainable Development Goal 7 (SDG 7), with a focus on AI's role in reducing energy vulnerability through a detailed spatial threshold analysis of government effectiveness. Specifically, the study investigates both the direct effect of AI on energy vulnerability and its spatial threshold effect via government effectiveness, utilizing panel data from 67 countries. The results show that AI significantly lowers global energy vulnerability and indirectly alleviates it by improving government effectiveness. The panel threshold model analysis uncovers that AI's mitigating effects are particularly pronounced in countries with lower levels of government effectiveness. Additionally, AI demonstrates significant spatial spillover effects, helping reduce energy vulnerability in both domestic and neighboring countries through technological diffusion and cooperation. The spatial threshold model further suggests that as government effectiveness improves, AI's impact on energy vulnerability in both domestic and neighboring countries diminishes. These findings are critical for advancing our understanding of AI's role in global energy policy, emphasizing the importance of accounting for the complexities and spatial effects of AI when designing effective energy security policies.