How has climate change been affected by electricity digitalization, supply chain digitalization, and green technologies? Building a path to environmentally sustainable development in E7 nations

Umra Waris, Lixin Cui, Shujaat Abbas and Muhammad Shoaib

Energy Economics, 2025, vol. 145, issue C

Abstract: Consumption-based CO2 emissions act as a critical indicator to identify the influence of electricity digitalization, supply chain digitalization, and green technologies on climate change, highlighting the need to establish appropriate environmental policies. This study addresses a significant gap in the literature by examining the relationship among electricity digitalization, supply chain digitalization, energy intensity, environment-related technologies, globalization, and economic growth on consumption-based CO2 emissions in the E7 nations from 1995 to 2023. Based on the Method of Moment Quantile Regression (MMQR), Bootstrap Quantile Regression (BSQR), and pairwise Dimitrescu causality tests, this study provides new findings on the drivers of CO2 emissions in these countries. The findings of the MMQR reveal that electricity digitalization, supply chain digitalization, energy intensity, and economic growth enhance CO2 emissions. Conversely, the results demonstrate that developing environment-related technology and globalization decreases CO2 emissions. It implies that even though digitalization, energy intensity, and economic growth may lead to emission intensification, there is evidence that it should reduce emission intensification through technological advancement, embracing green technologies and focusing intensely on environmental sustainability. Additionally, BSQR produced results similar to those of MMQR. The efficiencies highlighted in this study serve as important signals for policymakers. They must consider digitalization and economic growth while also promoting environmentally friendly practices. This aligns with SDG 13 (Climate Action), which aims to mitigate CO₂ emissions, and SDG 7 (Affordable and Clean Energy), which encourages energy efficiency and the transition to renewable energy sources in the E7 nations.

Keywords: Consumption-based CO2 emission; Electricity digitalization; Supply chain digitalization; Energy intensity; Environmental technologies; MMQR; SDG 13; SDG 7 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:145:y:2025:i:c:s014098832500252x

DOI: 10.1016/j.eneco.2025.108428

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