Work

An investigation of a nexus between digital economy and society and climate risk: fresh insights from new estimation

Year: 2025

Type: article

Abstract: This paper aims to empirically determine the impact of the digital transformation procedure on climate risks. Digitalization is captured by four elements, including digital connectivity (DESI_CONN), digital public services (DESI_DPS), digital human capital (DESI_HC), and integration of digital technology (DESI_IDT). We apply various econometric techniques to a database of 24 nations in Europe between 2017 and 2022. Linear effect analysis shows that climate risks generally rise due to digitalization. However, the non-linear analysis points out that environmental risks tend to decrease when digitalization gains a certain level. To reaffirm these findings, we also adopt alternative measurements of digitalization and climate risks. Moreover, we also examine the short-run and long-run impact of digitalization on climate issues, indicating that the influence of digital transformation on the environment is apparent in the long-run period. Our outcomes suggest crucial policy performances for climate risk mitigation.

Source: Journal of Economic Structures

DOI: 10.1186/s40008-025-00350-9

Author: Le Thanh Ha

Institution: National Economics University

Language: English

Topic: Energy, Environment, Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Climate action, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $1,990