From digitalization to renewable energy: How the tech-energy connection drives the green energy in belt and road countries

Wang Bingxin, Ghulam Muhammad Qamri, Guo Hui, Waqar Ameer and Muhammad Ansar Majeed

Energy Economics, 2025, vol. 144, issue C

Abstract: Sustainable economic development is the need of the current era which is not possible without the environment friendly energy consumption. Digitalization which is the major part of economic life also has a major role in determining the level of clean energy in an economy. Therefore, this study investigates the nonlinear relationship between digitalization and renewable energy consumption with particular focus on the role of human capital as a moderating factor. This study has developed a panel of the countries that are part of the One Belt One Road project from 1996 to 2019. The results of augmented system GMM show that, initially, digitalization adversely effects the renewable energy consumption, however; after specific threshold value, the impact of digitalization convert from adverse to beneficial for the renewable energy development. This study also shows that human that capital moderates the relationship between digitalization and renewable energy in a positive way showing a good human capital helps countries to early ending the negative impact of digitalization on renewable energy. The study also offers the policy implications that BRI countries should set energy efficiency standards for digital infrastructures, offer incentives for green data centers and simultaneously invest in human capital development.

Keywords: Digitization; Renewable energy; Human capital index; Belt and road initiative; Foreign direct investment (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:144:y:2025:i:c:s0140988325001471

DOI: 10.1016/j.eneco.2025.108324

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