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Digital Capabilities And Environmental Practices: Firm-Level Evidence From Romania

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  • BABUCEA ANA-GABRIELA

    (CONSTANTIN BRANCUSI UNIVERSITY OF TARGU JIU)

Abstract

Digital transformation and environmental sustainability are increasingly shaping firms’ strategies and operational practices. This study examines whether firms’ digital capabilities are associated with the adoption of environmental practices using firm-level data from the World Bank Enterprise Survey conducted in Romania. The analysis focuses on two dimensions of environmental engagement: monitoring CO₂ emissions and implementing measures aimed at reducing emissions or improving energy efficiency. A digitalization index capturing firms’ adoption of basic digital technologies is constructed and included in binary logistic regression models alongside several firmlevel characteristics. The results indicate that digitalization does not significantly influence firms’ decisions to monitor CO₂ emissions. However, firms with higher levels of digital adoption are significantly more likely to implement measures aimed at improving energy efficiency or reducing emissions. Firm size, export activity, market competition, and sector characteristics also influence the likelihood of adopting environmental measures. These findings suggest that digital capabilities may facilitate the implementation of environmentally responsible practices and highlight the importance of firm characteristics in shaping environmental behavior in emerging economies.

Suggested Citation

  • Babucea Ana-Gabriela, 2026. "Digital Capabilities And Environmental Practices: Firm-Level Evidence From Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 58-69, June.
    • Handle: RePEc:cbu:jrnlec:y:2026:v:3:p:58-69
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