AI ADOPTION, GREEN VENTURE CAPITAL, AND ENVIRONMENTAL POLICY: EMPIRICAL INSIGHTS FROM GREEN ENTREPRENEURSHIP

Abstract

This study investigates green entrepreneurship using an integrative framework that emphasizes environmental and economic issues in emerging and developed countries. The paper uses a quantitative research design where green entrepreneurship is the dependent variable, and the independent variables are AI adoption, renewable energy adoption, environmental taxation, green venture capital, and environmental, social, & governance practices. The study uses panel data from WDI and OECD from 2004 to 2021. The study uses an entropy measure for AI adoption. The methodology of the panel data analysis includes diagnostic tests, such as cointegration tests, correlation tests, variance inflation factor (VIF) tests, cross-sectional dependence tests, and stationarity tests. The findings show that AI adoption and ESG practices reduce green entrepreneurship, but renewable energy adoption, environmental taxation, and GVCs have a positive effect. The policy implications highlight the role of environmental regulations, the role of green finance, and technological capacity as critical to the promotion of inclusive and sustainable green development.