Taliat Bielialov

Type of the article: Research Article

Abstract
Recent assessments by the IEA, IRENA, and the World Bank indicate that data- and algorithm-driven operations can enhance energy security by increasing efficiency, reducing curtailment, and stabilizing grids as the renewable share grows, while also warning of ecological trade-offs from rising digital electricity use. Against this backdrop, government AI readiness emerges as a crucial enabling condition, providing the institutional and technological capacity to translate climate and sustainability targets into day-to-day energy system performance. Framed through an environmental lens, the study examines whether government AI readiness acts as an ecological enabler that strengthens energy security by supporting the integration of renewable energy, reducing emissions, and enhancing system resilience. To test this ecological proposition, we assemble a balanced panel of 125 countries (2020–2023), combining the Oxford Insights Government AI Readiness Index with the World Energy Council’s Energy Security Score as an operational proxy for environmentally robust energy systems. Using panel methods (fixed and random effects), with diagnostics for serial correlation, cross-sectional dependence, and heteroskedasticity, and Driscoll-Kraay standard errors for robust inference, we find that in the random-effects specification, a one-point rise in AI readiness is associated with a 0.1104-point improvement in the energy security score (p < 0.001). The effect remains statistically significant after accounting for temporal and cross-sectional dependencies, supporting the view that institutional preparedness to use AI can act as an enabling ecological instrument, facilitating the integration of renewable energy, demand-side efficiency, and system resilience, which together underpin cleaner, more secure energy.

Acknowledgment
This study was prepared as part of the project 101127491-EnergyS4UA-ERASMUS-JMO2023-HEI-TCH-RSCH. Views and opinions expressed are, however, those of the author(s) only and do not necessarily reflect those of the European Union or European Education and Culture Executive Agency. Neither the European Union nor the granting authority can be held responsible for them.

Type of the article: Research Article

Abstract
This study develops and empirically tests a composite framework for assessing the digital and innovation capacity of Ukrainian regions. The aim is to evaluate the impact of digital innovation capacity on regional economic performance under conditions of systemic disruption with the Virtual Grow Poles Index (VGPI) which captures four dimensions using observable indicators: 1) digital infrastructure readiness, 2) mobile internet coverage and uptake of digital public services, 3) startup ecosystem activity, and 4) governance and civic collaboration, which reflects participatory budgeting intensity, use of civic tech platforms, and open-data engagement.
Using a panel dataset of 24 Ukrainian regions for 2018–2024, we apply correlation analysis and fixed-effects regression models to quantify the contribution of digital and innovation capacity to regional economic performance. The VGPI shows a moderate yet stable correlation with per capita GRP growth (r ≈ 0.50). Regression estimates show that a 0.1 increase in VGPI is associated with an additional 0.07–0.09 percentage point increase in regional GRP growth, controlling for unemployment, industrial structure, and war exposure. Most substantial effects are observed in regions with high digital readiness and collaborative governance (Kyiv City, Lviv and Dnipropetrovsk regions), while war-affected regions (Sumy, Chernihiv, Zaporizhzhia, and Kherson regions) show substantially lower VGPI values and weaker economic performance. These findings suggest that in conditions of severe structural disruption caused by Russia’s war against Ukraine, strengthened digital ecosystems and collaborative governance structures can partially compensate for damaged physical infrastructure and enhance regional resilience.