Assessing the environmental sustainability corridor in Japan: the role of artificial intelligence and low-carbon energy

Decarbonization policies in sustainable development constitute one of Japan’s essential policy tools. Japan faces environmental unsustainability, as its ecological footprint exceeds its current biocapacity. In this context, it is clear that Japan needs sustainable policies in today’s conditions. It is clear that artificial intelligence technologies, which are becoming increasingly widespread today, are related to environmental factors and their social benefits. Low-carbon energy sources can be a policy tool in transitioning from grey energy to green. In this context, this paper examines the impact of artificial intelligence and low-carbon energies on environmental sustainability in Japan, using the Fourier Augmented ARDL model from 1985 to 2022. The study considers possible macro changes by integrating gradual structural changes into the cointegration model. Based on empirical findings, artificial intelligence plays a significant role in promoting environmental sustainability. Low-carbon energy use increases environmental quality. Ultimately, trade openness contributes to environmental development. The Japanese government should support the development of artificial intelligence technologies for a sustainable environment and introduce legal regulations to mitigate their environmental impacts. Energy security should be ensured by boosting the share of renewables in low-carbon energy. Ultimately, this study provides policy implications that can accelerate the achievement of the Sustainable Development Goals.