IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v86y2026ics0160791x26000369.html

Navigating sustainable growth: Decoding the influence of digital economy on economic sustainability

Author

Listed:
  • Rafiq, Muhammad Umair
  • Zhang, Yixiang
  • Saleem, Shaham

Abstract

The digital economy can offer transformative pathways to decouple economic growth from environmental degradation, heralding a sustainable future. In this context, can digital economy promote economic sustainability? This study investigates this relationship across European countries from 2003 to 2019 based on the awareness-motivation-capability framework. A new economic sustainability index is developed. By applying system generalized method of moments technique, the findings unveil a significant positive effect of the digital economy on economic sustainability. In terms of moderating impacts, natural resource depletion and research and development positively moderate and strengthen the digital economy’s impact on economic sustainability. Regarding mediating effects, this research identifies circular economy and energy efficiency, categorized as carrying capacity, along with financial development and institutional quality, classified as absorptive capacity, which positively mediate the association between the digital economy and economic sustainability. These findings highlight how the digital economy promotes economic sustainability, guiding policymakers in integrating digital initiatives.

Suggested Citation

  • Rafiq, Muhammad Umair & Zhang, Yixiang & Saleem, Shaham, 2026. "Navigating sustainable growth: Decoding the influence of digital economy on economic sustainability," Technology in Society, Elsevier, vol. 86(C).
    • Handle: RePEc:eee:teinso:v:86:y:2026:i:c:s0160791x26000369
    DOI: 10.1016/j.techsoc.2026.103247
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X26000369
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techsoc.2026.103247?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.

    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:teinso:v:86:y:2026:i:c:s0160791x26000369. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: https://www.journals.elsevier.com/technology-in-society .

    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.