This study aims to examine the role of green enterprises and their corporate activities in circular economy practices, particularly in the context of developing economies. The world we are living in is confronting enormous environmental concerns, e.g., climate change and pollution, and corporate activities that degrade the environment are primarily responsible for these concerns. Therefore, green entrepreneurship has the potential to reverse the trend and create an eco-friendly environment through circular economy activities. To further strengthen this perspective, this study proposes a Framework for AI-driven environmental policies that can support and enhance these eco-friendly efforts. To achieve the aforementioned objectives, this study uses firm-level data collected from the most recent (2023) World Bank Enterprises Surveys. Moreover, based on the nature of the dataset, diverse econometric models were constructed, and multiple proxies for both green enterprises and circular economy practices were used. The empirical results suggest that all the indicators of green enterprises have shown positive coefficient values together with statistically significant p-values. These findings are aligned with the prior studies and confirm that green enterprises play a vital role in enhancing circular economy practices, which are integral components of the proposed Framework for AI-driven environmental policies. The policy implications of this study recommend the importance of green enterprises and the role of circular economy practices within a Framework for AI-driven environmental policies for making effective environmental policies and achieving sustainable development goals for a better future.

Keywords: Green enterprises, circular economy practices, AI-driven environmental policies, sustainable development goals, developing countries