Work

Paved with good intentions: From digitalization to carbon neutrality

Year: 2024

Type: article

Abstract: Researchers and practitioners have promoted digitalization as a crucial tool for achieving carbon neutrality. In this paper, we argue that for digitalization to positively impact carbon neutrality, several essential supporting conditions are required. Using the Georgescu-Roegen/Daly ecological production function approach, we argue that digitalization alone a) will not necessarily lead to dematerialization, partly because it tends to economize on labor rather than other, less sustainable production factors, and partly because it requires a material- and energy-intensive infrastructure; b) will result in both quantitative and qualitative output expansion rather than substituting existing products and services with more sustainable alternatives; and c) will not promote carbon-conscious corporate governance practices. We suggest that a systemic perspective is necessary to analyze the complex relationships between digitalization and carbon neutrality. • Key trade-offs exist between digitalization and achieving carbon neutrality. • Using the Georgescu-Roegen/Daly framework to analyze these trade-offs. • Digitalization by itself will not move us closer to achieving carbon neutrality. • For digitalization to support carbon neutrality, several key conditions are needed. • Analyzing the link between digitalization and carbon neutrality needs a systemic view.

Source: Journal of Environmental Management

DOI: 10.1016/j.jenvman.2024.122956

Authors: Beniamino Callegari, Bisrat A. Misganaw, Mehdi Bagherzadeh

Institutions: Høyskolen Kristiania, NEOMA Business School

Language: English

Topic: Digital Economy and Transformation

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Climate action, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $3,850