Impact of supply chain digitalization, business enterprise R&D expenditure and government budget allocations for R&D: A roadmap towards carbon neutrality

Zhouzhi Li and Jiaguo Liu

Energy Economics, 2025, vol. 141, issue C

Abstract: Reliance only on economic growth fueled by fossil fuels may become unsustainable, where the negative ecological consequences of this growth path are rapidly impacting the ecosystem. To address these challenges, enhancing supply chain digitalization, increasing business enterprise R&D expenditure, and boosting government budget allocations for R&D are essential. Additionally, improving fossil fuel energy efficiency can play a critical role in reducing the environmental impact while transitioning to a more sustainable economic model. Hence, to solve this policy issue, this study empirically analyzed the drivers of CO2 emissions (CEM) between 2000Q1 and 2022Q4. By using time-frequency estimators, such as wavelet quantile-on-quantile regression (WQQR) and bootstrap Fourier Granger causality (BFQC), the research produces a variety of results that may be used to shape a policy framework focused on Sustainable Development Goals (SDGs). The results from BFQC show that business enterprise R&D expenditure, government budget allocations for R&D, fossil fuel energy efficiency, and oil Price Uncertainty lessen CEM while supply chain digitalization increases CEM. The bootstrap Fourier Granger causality also disclosed negative causality from business enterprise R&D expenditure government budget allocations for R&D, fossil fuel energy efficiency, and oil Price Uncertainty to CEM. In addition, supply chain digitalization has a positive predictive power over CEM. This study contributes to the existing literature by proposing an exhaustive and flexible policy structure designed to promote the advancement of SDGs 7, 8, and 13.

Keywords: Supply chain digitalization; Business enterprise R&D expenditure; Government budget allocations for R&D; Fossil fuel energy efficiency; Oil Price uncertainty (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:141:y:2025:i:c:s0140988324007667

DOI: 10.1016/j.eneco.2024.108057

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