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

Le Thanh Ha ()
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Le Thanh Ha: National Economics University

Journal of Economic Structures, 2025, vol. 14, issue 1, 1-33

Abstract: 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.

Keywords: Digital economy and society; Climate risks; European countries (search for similar items in EconPapers)
JEL-codes: C33 F21 G21 O16 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1186/s40008-025-00350-9

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