Impacts of digitalization on energy security: evidence from European countries
- PMID: 35966336
- PMCID: PMC9361994
- DOI: 10.1007/s10668-022-02545-7
Impacts of digitalization on energy security: evidence from European countries
Abstract
We are the first to empirically analyze the nexus of digital transformation and energy security (ES). This paper utilizes six indicators to reflect three aspects of ES, including acceptability, develop-ability, and sustainability. Applying the panel-corrected standard errors (PCSEs) and the feasible generalized least square estimates (FGLS) model to the international sample of 27 European countries over 2015 to 2019, this research reveals exciting findings. First, a promotion in digital transformation causes a significantly positive effect on the acceptability and sustainability of ES but a negative impact on develop-ability of ES. Second, the ES positively affects the digital transformation, especially the digital transformation in the business and public sectors. Third, results obtained from the dynamic fixed effects (DFEs) estimator for the autoregressive distributed lag (ARDL) method suggest that setting ES goals toward reducing energy consumption and pollution emission promotes the digital transformation process in the business sector of countries in the short run, while the promotion of renewable energy consumption helps countries enhance the digitalization process in the long run. Notably, digitalization is beneficial for sustainable economic development, reflected by a rise in non-fossil and renewable energy consumption and a diminish in CO2 emission, especially in the long run. Fourth, there is a nonlinear effect of the online transaction and digital public services on the acceptability, develop-ability, and sustainability of ES. In a similar spirit, the digital transformation is also accelerated more quickly if the efficiency of the energy system reaches a certain point.
Keywords: Digital transformation; Energy security; European countries; Short-term and long-term effects.
© The Author(s), under exclusive licence to Springer Nature B.V. 2022.
Figures


References
-
- Abdulwakil MM, Abdul-Rahim AS, Alsaleh M. Bioenergy efficiency change and its determinants in EU-28 region: Evidence using Least Square Dummy Variable corrected estimation. Biomass and Bioenergy. 2020;137:105569. doi: 10.1016/j.biombioe.2020.105569. - DOI
-
- Acheampong AO. Modelling for insight: Does financial development improve environmental quality? Energy Economics. 2019;83:156–179. doi: 10.1016/j.eneco.2019.06.025. - DOI
-
- Adam IO. Examining E-Government development effects on corruption in Africa: The mediating effects of ICT development and institutional quality. Technology in Society. 2020;61:101245. doi: 10.1016/j.techsoc.2020.101245. - DOI
-
- Ahmedov, I. (2020). The Impact of digital economy on international trade. European Journal of Business and Management Research, 5(4), 10.24018/ejbmr.2020.5.4.389
-
- Airehrour, D., Gutiérrez, J., & Ray, S. K. (2016). Greening and optimizing energy consumption of sensor nodes in the internet of things through energy harvesting: challenges and approaches. International Conference on Information Resources Management (Conf-IRM 2016), Cape Town, South Africa
LinkOut - more resources
Full Text Sources