Does Artificial Intelligence (AI) Enhance Green Economy Efficiency? The Role of Green Finance, Trade Openness, and R&D Investment

Since the early 21st century, the marine economy has become a pivotal force in driving global sustainable development (Winther et al. 2020). The oceans, absorbing ~23% of carbon emissions from human activities annually, play a crucial role in mitigating climate change (WMA, 2022). This phenomenon has elevated the exploitation of marine resources and the utilization of ocean carbon sinks as critical components in the maritime strategies of many coastal countries (Terhaar et al.,2024). Against this backdrop, the sustainable development of marine fisheries, an integral part of the marine economy, becomes paramount (Puszkarski and Śniadach, 2022). Despite this, the sector remains largely dependent on traditional fishing and aquaculture practices, which contribute to ocean pollution and ecological degradation, thus impeding sustainable progress (Suresh, 2023; Willis et al., 2022). For China, a nation with vast maritime domains and rich marine resources, there exists a critical challenge in harmonizing economic growth with marine ecological conservation. Despite various government efforts such as fishing bans and marine ranching, widespread issues of inefficiency and high energy consumption persist, attributed to the lack of sophisticated fishing technologies and management practices. In this context, green economic efficiency surfaces as a key measure for evaluating the sustainable progression of China’s marine fisheries (Zheng et al. 2022). This metric comprehensively incorporates the constraints of limited fishery resources and environmental pollution, providing a more inclusive view of the economic state of marine fisheries (Cochrane, 2021). Consequently, improving the green economic efficiency of marine fisheries is crucial for sustaining and bolstering the health and prospects of the marine ecosystem.

A Deep Dive into the Roles of Green Finance, Trade Openness, and R&D Investment

Imagine a sprawling, futuristic marine fishery, where tradition and technology converge to create a harmonious balance between progress and sustainability. In this next-gen fishery, AI-driven technologies take center stage, with smart sensors and autonomous vessels revolutionizing the fishing process. These sensors, equipped with advanced machine learning algorithms, constantly monitor marine life populations, water quality, and even weather patterns, ensuring that fishing practices remain sustainable and responsive to environmental changes. Autonomous vessels, powered by renewable energy sources like solar panels and wind turbines, navigate the vibrant ocean with precision, reducing the need for human intervention and minimizing the risk of overfishing.

The backdrop of this fishery is a testament to ecological conservation efforts, with thriving coral reefs and a diverse array of marine life coexisting with the AI-driven technologies. The ocean is a clean, vibrant canvas, where schools of fish dart between autonomous vessels and smart buoys, and coral reefs flourish undisturbed. The integration of green finance is evident, with investments in renewable energy and sustainable practices ensuring that the fishery operates in harmony with the environment. Symbols of international trade openness, such as cargo ships and logistic centers, dot the horizon, signifying the fishery’s role in the global economy.

Complementing the scene are research facilities, representing the fishery’s commitment to R&D investment. These state-of-the-art facilities, built on stilts over the ocean, are dedicated to advancing marine biology, AI, and sustainable fishing practices. Scientists and engineers work side by side, developing new technologies and methods to preserve marine ecosystems while optimizing fishing yields. This futuristic marine fishery is not just a place of production; it’s a symbol of humanity’s commitment to innovation, sustainability, and ecological conservation.

The Promise of AI in Marine Fisheries

The potential of Artificial Intelligence (AI) in transforming marine fisheries is immense, with machine learning algorithms, intelligent sensors, and deep learning technologies leading the charge. These tools can significantly enhance production efficiency by automating routine tasks, predicting fish migration patterns, and optimizing harvesting strategies. Intelligent sensors deployed on fishing vessels and throughout the ocean can collect vast amounts of data, including water temperature, salinity, and marine life activity. Machine learning algorithms can then analyze these data points to provide actionable insights, such as identifying the most productive fishing zones or anticipating changes in fish stocks.

AI can also revolutionize resource management and environmental conservation efforts. Deep learning technologies can process satellite imagery and other remote sensing data to monitor marine environments, detect illegal fishing activities, and track pollution levels. By integrating these insights, fishery management organizations can make data-driven decisions to ensure sustainable practices, such as setting dynamic catch quotas or establishing protected areas. Furthermore, AI models can simulate the impact of climate change on marine ecosystems, enabling proactive measures to mitigate adverse effects.

Information dissemination and market asymmetries are significant challenges in the fisheries sector, but AI can play a pivotal role in addressing these issues. Here’s how:

• AI-powered platforms can collect and analyze real-time market data, providing stakeholders with up-to-date information on supply, demand, and pricing. This transparency can help reduce market asymmetries and enable fairer transactions.
• AI can facilitate better communication and coordination among fisherfolk, regulators, and market players. For instance, AI chatbots can disseminate crucial information, such as weather updates, safety alerts, and market trends, in multiple languages and through various channels.
• By integrating AI with blockchain technology, the fisheries supply chain can be made more transparent and traceable. This can ensure that seafood is sourced legally and sustainably, further enhancing transaction efficiency and consumer trust.

Challenges in AI Deployment

Deploying AI in marine fisheries presents a myriad of challenges that need to be addressed to fully realize its potential. From a technical standpoint, the marine environment is incredibly harsh and unforgiving, with saltwater corrosion, extreme pressures, and limited communication bandwidth posing significant hurdles. Additionally, the dynamic and often unpredictable nature of marine ecosystems makes data collection and modeling particularly demanding. Furthermore, the high investment requirements for AI implementation cannot be overlooked. The initial capital expenditure for sensors, autonomous vehicles, and data processing infrastructure is substantial. Coupled with the need for specialized skills and continuous maintenance, these financial demands can be prohibitive, especially for small-scale fisheries and developing nations.

Nevertheless, investing in AI for marine fisheries, despite its challenges, offers considerable potential for significant returns. AI can revolutionize stock assessment, enhance monitoring and enforcement, and optimize fishing operations. By processing and analyzing vast amounts of data, AI can provide real-time insights into fish populations, predict migration patterns, and identify illegal fishing activities. Moreover, AI can help mitigate risks associated with fisheries management, such as bycatch and habitat destruction, by suggesting more sustainable practices. However, realizing these benefits requires navigating high-risk scenarios, including technological failures, data inaccuracies, and potential resistance from stakeholders.

To overcome these challenges and foster technological innovation in marine fisheries, several factors are crucial:

• R&D Investment:

  Sustained investment in research and development is essential for advancing AI technologies tailored to the marine environment. This includes improving sensor technologies, developing robust algorithms, and creating user-friendly interfaces for fisheries managers and practitioners.

• Green Finance:

  Mobilizing green finance can help alleviate the high investment requirements. This involves encouraging public and private investments that prioritize environmental sustainability and social responsibility, such as green bonds, impact investing, and blended finance.

• Trade Openness:

  Promoting international trade and cooperation can facilitate the exchange of technology, knowledge, and best practices. Open trade policies can enable access to advanced AI technologies, fostering collaboration and innovation on a global scale.

Through concerted efforts in these areas, it is possible to harness the power of AI for more sustainable and productive marine fisheries.

The Role of Green Finance, Trade Openness, and R&D Investment

Green finance, trade openness, and R&D investment are three interconnected mechanisms that can significantly support the integration of Artificial Intelligence (AI) in marine fisheries. Firstly, let’s examine the role of green finance. Green finance refers to the financial investments that are directed towards sustainable development projects and initiatives. In the context of marine fisheries, green finance can fund the adoption of low-carbon technologies that reduce the environmental impact of fishing practices. This includes investments in:

• Renewable energy sources to power fishing vessels and onshore facilities.
• Energy-efficient fishing equipment and gear.
• Carbon capture and storage technologies.

By funding these technologies, green finance enables the fisheries sector to lower its carbon footprint, promote sustainable fishing practices, and integrate AI-driven solutions for improved resource management.

Secondly, trade openness can play a pivotal role in enhancing market accessibility for AI-integrated marine fisheries. Trade openness refers to the liberalization of trade policies, which facilitates the exchange of goods, services, and technologies across borders. In this context, trade openness can:

• Increase the global demand for sustainably sourced seafood.
• Encourage the adoption of AI technologies to meet international standards and certifications.
• Promote international collaboration and knowledge sharing in AI applications for fisheries management.

By opening up markets, trade openness enables fisheries to access a wider range of AI technologies and benefit from global advancements in this field.

Lastly, R&D investment is a critical driver of AI advancements tailored to marine fisheries. Investing in research and development allows for the creation and implementation of AI algorithms, models, and tools that address the specific challenges faced by the fisheries sector. These investments can lead to:

• Improved stock assessment methods using AI and machine learning.
• Enhanced monitoring, control, and surveillance systems for illegal, unreported, and unregulated fishing.
• Development of AI-driven decision support systems for fisheries management.

By investing in R&D, the fisheries sector can leverage AI to improve sustainability, profitability, and resilience in the face of climate change and other environmental pressures.

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