Econometric analysis reveals digital economy expansion lowers ecological footprint in OECD countries, highlighting the essential role of renewable energy transition.
Key Points
To examine the dynamic relationship between digital development and ecological sustainability while evaluating the mediating roles of renewable energy transition and environmental governance.
Analyzed longitudinal panel data from 37 OECD countries spanning the years 2007 through 2022.
Applied two-step system Generalized Method of Moments (SYS-GMM) to model direct effects, nonlinear dynamics, and moderating institutional factors.
Digital development significantly lowered ecological footprints through both direct and nonlinear effects driven by expanded broadband and connectivity infrastructure.
Renewable energy transition served as the primary mediating pathway through which digitalization promoted resource efficiency and environmental gains.
Stringent fiscal environmental governance dampened the beneficial impact of digitalization on renewable energy transitions, reflecting regulatory mismatches with rapid technological innovation.