Reconsider the role of digital revolution in public sector during the time of climate risk: Fresh insights from panel autoregression model

Le Thanh Ha

Technological Forecasting and Social Change, 2025, vol. 219, issue C

Abstract: This study investigates the dynamic relationship between digital public services and climate risks alongside factors like economic growth and trade share. The study uses a Panel Vector Autoregressive (PVAR) model with a dataset of 27 European countries. The findings indicate that climate risks initially hinder the development of digital public services, likely due to infrastructure damage and disruptions caused by extreme weather events. However, in the subsequent years, a positive correlation emerged, suggesting that governments increasingly recognize the importance of robust digital infrastructure in mitigating the adverse effects of climate risks and enhancing resilience. Additionally, economic growth demonstrates a delayed positive impact on digital public services, whereas trade share exhibits a more immediate positive influence. These results highlight the complex interplay between climate risks, economic factors, and the digitalization of public services. Policymakers should consider these findings to develop strategies that leverage digital technologies for climate change adaptation and sustainable development.

Keywords: Digital economy and society; Climate risks; European countries; Panel vector autoregression model; PVAR (search for similar items in EconPapers)
JEL-codes: C33 F21 G21 O16 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:219:y:2025:i:c:s0040162525002744

DOI: 10.1016/j.techfore.2025.124243

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