Impacts of Digital Infrastructure and Renewable Energy on CO2 Emission Intensity: Evidence from 217 Countries

Nui Dang Nguyen (), Phuong Kim Ngo (), Quang Viet Pham (), Huyen Thu Thi Thai (), Anh Tuan Nguyen Doan (), Anh Linh Vu () and Tung Thanh Tran ()
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Nui Dang Nguyen: College of Economics and Public Management, National Economics University, Hanoi, Vietnam
Phuong Kim Ngo: School of Advanced Education Programs, National Economics University, Vietnam
Quang Viet Pham: School of Advanced Education Programs, National Economics University, Vietnam
Huyen Thu Thi Thai: School of Advanced Education Programs, National Economics University, Vietnam
Anh Tuan Nguyen Doan: School of Advanced Education Programs, National Economics University, Vietnam
Anh Linh Vu: School of Advanced Education Programs, National Economics University, Vietnam
Tung Thanh Tran: School of Advanced Education Programs, National Economics University, Vietnam

International Journal of Energy Economics and Policy, 2025, vol. 15, issue 4, 118-126

Abstract: This study investigates the effects of digital infrastructure and renewable energy consumption on CO? emission intensity across 217 countries from 1994 to 2023. Employing fixed effects and lagged panel regression models, the analysis reveals that broadband and internet usage are positively associated with CO? emission intensity, primarily due to the rising energy demands related to data infrastructure. In contrast, mobile subscriptions correlate with reduced emissions, suggesting gains in energy efficiency. Renewable energy consumption initially exhibits inefficiencies, contributing to higher emissions in the short term; however, it ultimately yields positive sustainability outcomes over time, particularly in high-income countries. The study also identifies significant heterogeneity across income groups, with low-income countries benefiting more environmentally from early-stage digital adoption. These findings underscore the need for differentiated digital and energy policy strategies tailored to a country's development level. The paper contributes to the literature by providing a comprehensive, data-driven analysis of the interplay between digitalization, renewable energy, and environmental efficiency. The insights support the formulation of targeted, evidence-based policies for advancing low-carbon, digitally inclusive development trajectories worldwide.

Keywords: Digital Infrastructure; Renewable Energy; CO2 Emission Intensity; Sustainable Development; Panel Data (search for similar items in EconPapers)
Date: 2025
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DOI: 10.32479/ijeep.19562

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