Assessing the role of financial development in natural resource utilization efficiency: Does artificial intelligence technology matter?

Improving natural resource utilization efficiency (NRUE) in China has become an inevitable requirement for sustainable development in the future, especially in the process of financial development and the application of emerging technologies. Therefore, this paper investigates the nexus among financial development, artificial intelligence (AI) technological innovation, and NRUE by using panel data from 30 provinces in China from 2006 to 2019. We also conduct heterogeneity analyses from the perspective of regions and resources. The main results indicate that financial development reduces NRUE due to inefficient use of natural resources. Moreover, AI technological innovation facilitates NRUE, thereby mitigating the negative influence of financial development on NRUE. Finally, the influence of AI technological innovation development on NRUE improvement is significantly greater in southern Chinese provinces and resource-based provinces. The results of this research provide valuable references for China to enhance the efficient use of natural resources in the future. •This paper assesses the relationship between financial development and natural resource utilization efficiency (NRUE).•We also explore the role of artificial intelligence (AI) technological innovation in NRUE.•Financial development reduces the NRUE due to inefficient use of natural resources.•AI technological innovation has effectively improved NRUE.•Innovative AI technology mitigates the negative impact of financial development on NRUE.