The Role of Artificial Intelligence in Carbon Pricing Policies: Economic and Environmental Implications

Authors

  • Mohammad Rabidul Islam Youngstown State University, USA Author
  • MD Maruf Islam Wichita State University, USA Author
  • Istiaque Ahmed Badhan Wichita State University, USA Author
  • MD Nurul Hasnain Wichita State University, Wichita, KS, USA Author

Keywords:

Artificial Intelligence, Carbon Pricing, Climate Policy, United States, Environmental Justice, Machine Learning, Trust in AI, Algorithmic Bias, Policy Support, Digital Climate Governance

Abstract

The use of AI in carbon pricing policies can offer both opportunities and future challenges for the United States as it acts on climate change. This study examines experts’ perspectives on AI’s potential to enhance the effectiveness, enforcement, and equity of carbon pricing. Based on a survey of 200 U.S. experts, the research explores key factors shaping support for AI-driven climate policies, including technological feasibility, public acceptance, and regulatory hurdles. Statistical analyses, including chi-square, ANOVA, correlation, multiple regression, and logistic regression, reveal that AI’s policy role is most influenced by knowledge and trust, whereas algorithmic bias, data limitations, and legal uncertainties remain significant barriers.

The findings highlight urgent U.S. priorities in climate resilience, digital infrastructure, and environmental justice, offering critical insights into the social and technical readiness for AI-integrated carbon policies. Furthermore, the study identifies disparities in expert opinions, with technologists emphasizing innovation while policymakers stress accountability. Public-private collaboration and interdisciplinary research are deemed essential to overcoming implementation challenges. The study also underscores the need for transparent governance frameworks to address ethical concerns, mitigate risks of automation bias, and foster public trust. By identifying key drivers of policy acceptance, this research provides actionable recommendations for lawmakers, including adaptive regulations and stakeholder engagement strategies.

Ultimately, this study advances understanding of AI’s role in climate action, informing both policy practitioners and academic researchers while paving the way for responsible innovation in carbon pricing mechanisms. Future research should explore real-world case studies and international comparisons to refine best practices for AI-enabled climate governance.

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Author Biographies

  • Mohammad Rabidul Islam, Youngstown State University, USA

    MS in Applied Economics,

    Youngstown State University, USA

    rabidulislam15@gmail.com

  • MD Maruf Islam, Wichita State University, USA

    Masters of Science,

    Wichita State University, USA

    Email: mxislam55@shockers.wichita.edu

  • Istiaque Ahmed Badhan, Wichita State University, USA

    MSc in Supply Chain Management

    Wichita State University, USA

    Email: ixbadhan@shockers.wichita.edu

  • MD Nurul Hasnain, Wichita State University, Wichita, KS, USA

    Masters in Management Science inSupply Chain Management

    Wichita State University, Wichita, KS, USA.

    Email: mn_has9@yahoo.com; mxhasnain1@shockers.wichita.edu

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Published

05-07-2025

How to Cite

The Role of Artificial Intelligence in Carbon Pricing Policies: Economic and Environmental Implications. (2025). Journal of Engineering and Computational Intelligence Review, 3(2), 1-19. https://jecir.com/index.php/jecir/article/view/23

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