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Digitalization in Europe: A potential driver of energy efficiency for the twin transition policy strategy

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  • Benedetti, Ilaria
  • Guarini, Giulio
  • Laureti, Tiziana

Abstract

This paper aims to study the impact of digitalization on energy efficiency in Europe, where institutions are committed to promote both digital transformation and energy transition by implementing the European Twin Transition, ETT [1]. The paper starts by empirically analysing the state of play of the Twin Transition across European Member States (MS) by mapping the Digital Economy and Society Index (DESI), its sub-indices and the energy productivity. We then discuss the impact of the abovementioned digital indicators on energy productivity growth in 26 European MS during the period 2016–2020 by applying a system GMM model. The results show a significant and positive impact of digitalization on energy efficiency and relevant complementarities across diverse digitalization dimensions. This study contributes in an original manner to the literature by applying for the first time DESI and its sub-indices in a European twin transition analysis; moreover, empirical insights have important policy implications because all the variables considered are parts of the European policy targets.

Suggested Citation

  • Benedetti, Ilaria & Guarini, Giulio & Laureti, Tiziana, 2023. "Digitalization in Europe: A potential driver of energy efficiency for the twin transition policy strategy," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:soceps:v:89:y:2023:i:c:s0038012123002136
    DOI: 10.1016/j.seps.2023.101701
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    Cited by:

    1. Nelli, Linnea & Virgillito, Maria Enrica & Vivarelli, Marco, 2025. "A Twin Transition or a Policy Flagship? Emergent Constellations and Dominant Blocks in Green and Digital Technologies," IZA Discussion Papers 17779, Institute of Labor Economics (IZA).
    2. Peng, Hua-Rong & Qin, Xiong-Feng, 2024. "Digitalization as a trigger for a rebound effect of electricity use," Energy, Elsevier, vol. 300(C).
    3. Jiang, Ying & Xie, Yong & Shao, Qinglong, 2024. "How did Internet usage affect life satisfaction before and after COVID-19? Mediating effects and heterogeneity analysis," Socio-Economic Planning Sciences, Elsevier, vol. 95(C).
    4. 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).
    5. Huang, Chenchen & Lin, Boqiang, 2025. "The impact of digital economy on energy rebound effect in China: A stochastic energy demand frontier approach," Energy Policy, Elsevier, vol. 196(C).

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    More about this item

    Keywords

    Twin transition; Digital transformation; Energy efficiency; DESI;
    All these keywords.

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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