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From green to digital: Exploring the role of ecological footprints on cybersecurity risk

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  • Lin, Weizheng
  • Wang, Chih-Wei
  • Li, Ying-Jie
  • Chen, Jian-Yun

Abstract

This paper investigates the link between firms' ecological footprints (EF) and cybersecurity risk in U.S. companies from 2007 to 2018. We find that higher EF is associated with lower cybersecurity risk. To address endogeneity concerns, we employ multiple identification strategies and confirm the robustness of the results. Mechanism analyses suggest that innovation and cash holdings mediate this relationship. Our heterogeneity analysis reveals that EF significantly reduces cybersecurity risk during stable periods. Furthermore, we find that companies with higher ecological footprints experience greater increases in cybersecurity risk when external uncertainty intensifies. The negative relationship between EF and cybersecurity risk is also more pronounced among firms with higher debt levels, while it becomes weaker for firms with stronger financial performance. These findings offer valuable insights for integrating environmental sustainability into firms' cybersecurity strategies.

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  • Lin, Weizheng & Wang, Chih-Wei & Li, Ying-Jie & Chen, Jian-Yun, 2025. "From green to digital: Exploring the role of ecological footprints on cybersecurity risk," Energy Economics, Elsevier, vol. 146(C).
    • Handle: RePEc:eee:eneeco:v:146:y:2025:i:c:s0140988325003706
    DOI: 10.1016/j.eneco.2025.108546
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