IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v145y2025ics0140988325002531.html
   My bibliography  Save this article

How supply chain and digitalization are significant contributors to international trade? The role of renewable and energy intensity in global trade powerhouses' economies

Author

Listed:
  • Han, Qiujie
  • Wang, Fei
  • Wang, Yushi
  • Guo, Feng

Abstract

As technology advances rapidly and environmental awareness grows, it is essential to understand the dynamics of international trade among global trade powerhouses. This study fills the gap in the literature to examine how supply chain, digital technology, renewable energy consumption, energy intensity, and S&P global equity indices influence trade in the international trade powerhouse. The current study employed the Method of Moment Quantile Regression (MMQR) and Dimitrescu Causality Test, utilizing data from 2000 to 2022. The findings indicate that the supply chain and renewable energy negatively impact international trade. Digitalization initially shows an insignificant negative effect at the lower quantile, but it demonstrates a positive relationship with global trade at medium and higher quantiles. Energy intensity has an insignificant and positive impact on trade at the lower and medium quantiles, while at the higher quantile, it shows a positive and significant impact on trade. Lastly, the S&P Global stock exhibits a positive and significant impact at the medium and higher quantiles. These insights present practical policy recommendations to improve digital connectivity and integrate energy conservation to foster sustainable economic development and stable globalization relationships about the sustainable development goals (SDGs 17&8).

Suggested Citation

  • Han, Qiujie & Wang, Fei & Wang, Yushi & Guo, Feng, 2025. "How supply chain and digitalization are significant contributors to international trade? The role of renewable and energy intensity in global trade powerhouses' economies," Energy Economics, Elsevier, vol. 145(C).
    • Handle: RePEc:eee:eneeco:v:145:y:2025:i:c:s0140988325002531
    DOI: 10.1016/j.eneco.2025.108429
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988325002531
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2025.108429?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Maximilian Nicolaus Burger & Donia Mahabadi & Björn Vollan, 2024. "Technology-minded climate delegates support less stringent climate policies," Nature Sustainability, Nature, vol. 7(11), pages 1405-1408, November.
    2. Bennæs, Anders & Skogset, Martin & Svorkdal, Tormod & Fagerholt, Kjetil & Herlicka, Lisa & Meisel, Frank & Rickels, Wilfried, 2024. "Modeling a supply chain for carbon capture and offshore storage—A German–Norwegian case study," Open Access Publications from Kiel Institute for the World Economy 295104, Kiel Institute for the World Economy (IfW Kiel).
    3. Mohamad Egi Destiartono & Firmansyah Firmansyah, 2024. "Does the Linkage between GDP, Renewable Energy, and Methane Validate the EKC hypothesis? Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 711-720, March.
    4. Wu Huilan & Seyi Saint Akadiri & Ilham Haouas & Abraham Ayobamiji Awosusi & Ada Tony Odu, 2024. "Impact of trade liberalization and renewable energy on load capacity factor: Evidence from novel dual adjustment approach," Energy & Environment, , vol. 35(2), pages 795-814, March.
    5. Machado, José A.F. & Santos Silva, J.M.C., 2019. "Quantiles via moments," Journal of Econometrics, Elsevier, vol. 213(1), pages 145-173.
    6. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    7. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    8. Nabila Amin & Muhammad Salman Shabbir & Huaming Song & Kashif Abbass, 2024. "Renewable energy consumption and its impact on environmental quality: A pathway for achieving sustainable development goals in ASEAN countries," Energy & Environment, , vol. 35(2), pages 644-662, March.
    9. Chen, Suisui & Zhang, Hongyan & Wang, Shuhong, 2022. "Trade openness, economic growth, and energy intensity in China," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    10. Hasan, Mohammad Maruf & Nan, Su & Waris, Umra, 2024. "Assessing the dynamics among oil consumption, ecological footprint, and renewable energy: Role of institutional quality in major oil-consuming countries," Resources Policy, Elsevier, vol. 90(C).
    11. Can Zhang & Umra Waris & Leren Qian & Muhammad Irfan & Mubeen Abdur Rehman, 2024. "Unleashing the dynamic linkages among natural resources, economic complexity, and sustainable economic growth: Evidence from G‐20 countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(4), pages 3736-3752, August.
    12. Deng, Sijing & Fu, Ke & Xu, Jiayan & Zhu, Kaijie, 2021. "The supply chain effects of trade credit under uncertain demands," Omega, Elsevier, vol. 98(C).
    13. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    14. Rusiadi Rusiadi & Muhammad Hidayat & Dewi Mahrani Rangkuty & Kiki Farida Ferine & Jumadil Saputra, 2024. "The Influence of Natural Resources, Energy Consumption, and Renewable Energy on Economic Growth in ASEAN Region Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 332-338, May.
    15. Yang, Xiaodong & Shira, Ruba Khalid & Dang, Lan Phuong & Hao, Pu, 2025. "Unforeseen benefits: Can ESG enhance corporate access to commercial credit financing?," Research in International Business and Finance, Elsevier, vol. 75(C).
    16. Elisa Di Febo & Eliana Angelini & Tu Le, 2024. "Environment and Digitalization: The New Paradigms in the European Stock Markets," Economies, MDPI, vol. 12(3), pages 1-15, March.
    17. Horvey, Sylvester Senyo & Odei-Mensah, Jones & Moloi, Tankiso & Bokpin, Godfred A., 2024. "Digital economy, financial development and energy transition in Africa: Exploring for synergies and nonlinearities," Applied Energy, Elsevier, vol. 376(PB).
    18. Jamal El Baz & Anass Cherrafi & Abla Chaouni Benabdellah & Kamar Zekhnini & Jean Noel Beka Be Nguema & Ridha Derrouiche, 2023. "Environmental Supply Chain Risk Management for Industry 4.0: A Data Mining Framework and Research Agenda," Post-Print hal-04335003, HAL.
    19. Jun Zhao & Xiao-yan Liu, 2024. "ICT, Supply Chain Digital Integration Capability, and Firm Financial Performance: The Antagonistic Effects of Perceived Government Support and Cognitive Constraints on Digital Transformation," SAGE Open, , vol. 14(2), pages 21582440241, April.
    20. Genevieve LeBaron, 2021. "The Role of Supply Chains in the Global Business of Forced Labour," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(2), pages 29-42, April.
    21. Zhang, Xuan & Hasan, Mohammad Maruf & Waris, Umra, 2024. "Assessing the nexus between natural resources and government effectiveness: Role of green innovation in shaping environmental sustainability of BRICS nations," Resources Policy, Elsevier, vol. 93(C).
    22. Ebaidalla, Ebaidalla M., 2024. "The impact of taxation, technological innovation and trade openness on renewable energy investment: Evidence from the top renewable energy producing countries," Energy, Elsevier, vol. 306(C).
    23. Umra Waris & Pallavi Sri, 2024. "Assessing the long-term impact of macroeconomic and environment dynamics: Does sustainable energy production shape the environmental landscape of south ASIAN nations?," Energy Technologies and Environment, Anser Press, vol. 2(1), pages 14-31, March.
    24. Wang, Qiang & Hu, Sailan & Li, Rongrong, 2024. "Could information and communication technology (ICT) reduce carbon emissions? The role of trade openness and financial development," Telecommunications Policy, Elsevier, vol. 48(3).
    25. You, Kefei & Raju Chinthalapati, V.L. & Mishra, Tapas & Patra, Ramakanta, 2024. "International trade network and stock market connectedness: Evidence from eleven major economies," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Waris, Umra & Cui, Lixin & Abbas, Shujaat & Shoaib, Muhammad, 2025. "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," Energy Economics, Elsevier, vol. 145(C).
    2. Zhang, Mindan & Ma, Xiang & Mai, Shunhao & Qing, Lingli, 2025. "Drivers of supply chain, environmental innovation, and digital population: The role of inflation and renewable energy on GHG emission in Indonesia," Energy Economics, Elsevier, vol. 145(C).
    3. Ding, Hongjie & Feng, Muzi & Chen, Qian, 2025. "How supply chain disruptions, renewable energy consumption, and eco-innovation mitigate environmental degradation? A path towards sustainable development in France," Energy Economics, Elsevier, vol. 145(C).
    4. Xiu, Guangli, 2025. "Analyzing the impact of supply chain and digitalization in the Chinese economy: What is the role of energy consumption, government expenditure, and industrialization in environmental pollution?," Energy Economics, Elsevier, vol. 145(C).
    5. Chen, Jingping & Zhao, Chunzi & Liu, Shuang & Li, Yuchen, 2025. "How do digitalizing ICT and supply chain globalization affect renewable energy in ASEAN nations? The mediating role of sustainable environmental practices using the MMQR and PCSEs model," Energy Economics, Elsevier, vol. 142(C).
    6. Wen, Chen & Xing, Yuhang & Wang, Tao & Liao, Sheng & Gao, Ke, 2025. "How do green supply chain management and renewable energy consumption influence carbon emissions in China and India? A comparative analysis," Energy Economics, Elsevier, vol. 143(C).
    7. Irfan, Muhammad & Quddus, Abdul & Shahzad, Farrukh & Wang, Yanfei, 2025. "Do ICT trade balances and natural resources foster carbon emissions? The role of government effectiveness and green technology innovation," Structural Change and Economic Dynamics, Elsevier, vol. 72(C), pages 320-329.
    8. Wang, Lingkang & Yang, Yiqu & Yang, Dongping & Zhou, Yaying, 2024. "Role of supply chain disruptions and digitalization on renewable energy innovation: Evidence from G7 nations," Energy Economics, Elsevier, vol. 140(C).
    9. Liu, Hanzhen & Li, Ningxin & Zhao, Shenghan & Xue, Pengcheng & Zhu, Chenyuan & He, Yun, 2025. "The impact of supply chain and digitization on the development of environmental technologies: Unveiling the role of inflation and consumption in G7 nations," Energy Economics, Elsevier, vol. 142(C).
    10. Huang, Shuai & Tan, Huizhu, 2025. "Evaluating the effects of green supply chain, digital technologies, and energy prices on renewable energy innovations: A way forward for an emerging economy," Energy Economics, Elsevier, vol. 141(C).
    11. Zhang, Xuan & Hasan, Mohammad Maruf & Waris, Umra, 2024. "Assessing the nexus between natural resources and government effectiveness: Role of green innovation in shaping environmental sustainability of BRICS nations," Resources Policy, Elsevier, vol. 93(C).
    12. Fang, Shuya & Fang, Wei, 2023. "How fiscal decentralization and trade diversification influence sustainable development: Moderating role of resources dependency," Resources Policy, Elsevier, vol. 84(C).
    13. Khan, Yasir & Hassan, Taimoor & Guiqin, Huang & Nabi, Ghulam, 2023. "Analyzing the impact of natural resources and rule of law on sustainable environment: A proposed policy framework for BRICS economies," Resources Policy, Elsevier, vol. 86(PA).
    14. Wang, Xiang & Yin, Jian & Yang, Yao & Muda, Iskandar & Abduvaxitovna, Shamansurova Zilola & AlWadi, Belal Mahmoud & Castillo-Picon, Jorge & Abdul-Samad, Zulkiflee, 2023. "Relationship between the resource curse, Forest management and sustainable development and the importance of R&D Projects," Resources Policy, Elsevier, vol. 85(PA).
    15. Guan, Zepeng & Hossain, Mohammad Razib & Sheikh, Muhammad Ramzan & Khan, Zeeshan & Gu, Xiao, 2023. "Unveiling the interconnectedness between energy-related GHGs and pro-environmental energy technology: Lessons from G-7 economies with MMQR approach," Energy, Elsevier, vol. 281(C).
    16. Cai, Helen Huifen & Yuan, Qiong & Tang, Shirley & Nguyen, Quang & Dai, Jie & Zheng, Wenxiu, 2025. "The moderating role of green innovation and ecofriendly goods in growth-greenhouse gas Nexus: A new policy dimension," Energy Economics, Elsevier, vol. 142(C).
    17. Tang, Juan & Jiang, Yanyan, 2024. "Natural resources-environment dilemma: The context of foreign direct investment and international trade," Resources Policy, Elsevier, vol. 89(C).
    18. Shahbaz, Muhammad & Nwani, Chinazaekpere & Bekun, Festus Victor & Gyamfi, Bright Akwasi & Agozie, Divine Q., 2022. "Discerning the role of renewable energy and energy efficiency in finding the path to cleaner consumption and production patterns: New insights from developing economies," Energy, Elsevier, vol. 260(C).
    19. Mamkhezri, Jamal, 2025. "Assessing price elasticity in US residential electricity consumption: A comparison of monthly and annual data with recession implications," Energy Policy, Elsevier, vol. 200(C).
    20. Qiao, Hongqiang & Kang, Yongwei & Yan, Jixuan & Zhang, Jia & Zheng, Zhiqin & Liang, Qiaoxia, 2023. "What role does trade expansion play in the natural resource sustainability of highly resource-consuming countries? Testing Moderating Role of Exports and Innovation," Resources Policy, Elsevier, vol. 82(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:145:y:2025:i:c:s0140988325002531. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.