HOW DIGITALIZATION, CIRCULAR ECONOMY AND DECARBONIZATION INTERCONNECT TO SUPPORT SUSTAINABLE ECONOMIC DEVELOPMENT

Piciu Gabriela-Cornelia
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Piciu Gabriela-Cornelia: CENTRE FOR FINANCIAL AND MONETARY RESEARCH VICTOR SLAVESCU

Annals - Economy Series, 2025, vol. 6, 105-110

Abstract: This article analyzes the interdependence relationships between digitalization, circular economy and decarbonization, three concepts that characterize the structural transformations that are taking place in the contemporary transition towards sustainable economic models. The objective of the research is to explain how digitalization accelerates the implementation of circular models in the economy for the efficient use of resources and to what extent decarbonization represents the result of the resulting effect of these processes. Based on the research of the specialized literature, it is shown that digital technologies facilitate the traceability of resources, the optimization of production chains, the transformation of traditional products into smart services. It is thus considered that digitalization accelerates the transition to the circular economy, by extending the life cycle of products, indirectly generating the reduction of pollution, greenhouse gases, and implicitly climate change. The research results show that decarbonization manifests itself as a result of the interaction between digital technologies and the adoption of circularity. The conclusions underline the need for an integrated approach, as limitations associated with digitalisation, such as infrastructure disparities and risks generated by the energy consumption of technologies, can influence the pace of the transition. The analysis shows that the interdependent relations between the three concepts constitute the foundation of the green transition in the European Union and of the redefinition of production, consumption and value creation models, orienting the economy towards sustainability, from ownership to use.

Keywords: digital technologies; circular business models; resource management; carbon emission reduction; sustainable transition (search for similar items in EconPapers)
Date: 2025
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