IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v18y2025i7p1590-d1618081.html
   My bibliography  Save this article

Harnessing a Renewable Resource for Sustainability: The Role of Geothermal Energy in Italy’s Business Sector

Author

Listed:
  • Angelo Arcuri

    (Department of Management, European School of Economics, 50123 Florence, Italy)

  • Lorenzo Giolli

    (Faculty of Economics and Law, Pegaso University, 80143 Naples, Italy)

  • Cosimo Magazzino

    (Department of Political Science, Roma Tre University, 00154 Rome, Italy
    Economic Research Center, Western Caspian University, Baku 1001, Azerbaijan)

Abstract

Addressing critical challenges such as climate change, environmental degradation, and resource depletion requires a swift transition to efficient and environmentally friendly energy solutions. Among these, geothermal energy is recognized for its dependability, low environmental impact, and versatility. This study investigates the role of geothermal energy in Italy’s business sector, examining its impact on companies and social perception. It specifically evaluates how communicating geological, hydrological, and atmospheric risks associated with geothermal projects influences firms’ likelihood of experiencing social acceptance challenges. Additionally, this research quantifies the impact of geothermal energy adoption on companies’ energy costs and CO 2 emissions. The analysis further explores the long-term implications of expanding the use of this renewable resource through sensitivity analysis, focusing on its effects on emissions and costs. The findings indicate that firms communicating geothermal-related risks are less likely to experience social acceptance challenges compared to those that do not. Moreover, this study shows that the use of geothermal energy positively impacts firms’ business and environmental performance by reducing energy costs and CO 2 emissions. Sensitivity analysis demonstrates that increasing the proportion of geothermal energy usage amplifies these benefits, thereby enhancing firms’ competitiveness. This research provides a comprehensive framework for promoting geothermal energy integration in business operations, offering valuable insights to support the global shift toward sustainable energy systems.

Suggested Citation

  • Angelo Arcuri & Lorenzo Giolli & Cosimo Magazzino, 2025. "Harnessing a Renewable Resource for Sustainability: The Role of Geothermal Energy in Italy’s Business Sector," Energies, MDPI, vol. 18(7), pages 1-16, March.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:7:p:1590-:d:1618081
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/18/7/1590/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/18/7/1590/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dalla Longa, Francesco & Nogueira, Larissa P. & Limberger, Jon & Wees, Jan-Diederik van & van der Zwaan, Bob, 2020. "Scenarios for geothermal energy deployment in Europe," Energy, Elsevier, vol. 206(C).
    2. Pereira, Edinaldo José da Silva & Pinho, João Tavares & Galhardo, Marcos André Barros & Macêdo, Wilson Negrão, 2014. "Methodology of risk analysis by Monte Carlo Method applied to power generation with renewable energy," Renewable Energy, Elsevier, vol. 69(C), pages 347-355.
    3. Andrea Masini & Emanuela Menichetti, 2013. "Investment decisions in the renewable energy sector: An analysis of non-financial drivers," Post-Print hal-00796331, HAL.
    4. Naqvi, Muhammad & Yan, Jinyue & Dahlquist, Erik & Naqvi, Salman Raza, 2017. "Off-grid electricity generation using mixed biomass compost: A scenario-based study with sensitivity analysis," Applied Energy, Elsevier, vol. 201(C), pages 363-370.
    5. Shortall, Ruth & Davidsdottir, Brynhildur & Axelsson, Guðni, 2015. "Geothermal energy for sustainable development: A review of sustainability impacts and assessment frameworks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 44(C), pages 391-406.
    6. Self, Stuart J. & Reddy, Bale V. & Rosen, Marc A., 2013. "Geothermal heat pump systems: Status review and comparison with other heating options," Applied Energy, Elsevier, vol. 101(C), pages 341-348.
    7. Masini, Andrea & Menichetti, Emanuela, 2013. "Investment decisions in the renewable energy sector: An analysis of non-financial drivers," Technological Forecasting and Social Change, Elsevier, vol. 80(3), pages 510-524.
    8. Borgonovo, Emanuele & Plischke, Elmar, 2016. "Sensitivity analysis: A review of recent advances," European Journal of Operational Research, Elsevier, vol. 248(3), pages 869-887.
    9. Masini, Andrea & Menichetti , Emanuela, 2013. "Investment Decisions in the Renewable Energy Sector: An Analysis of Non-Financial Drivers," HEC Research Papers Series 976, HEC Paris.
    10. Rauan Meirbekova & Dario Bonciani & Dagur Ingi Olafsson & Aysun Korucan & Pinar Derin-Güre & Virginie Harcouët-Menou & Wilfried Bero, 2024. "Opportunities and Challenges of Geothermal Energy: A Comparative Analysis of Three European Cases—Belgium, Iceland, and Italy," Energies, MDPI, vol. 17(16), pages 1-27, August.
    11. Peng Yu & Yufeng Xu & Honghua Liu & Xinyu Liu & Jiani Fu & Meijun Xu & Dankun Zhou, 2024. "Regional-Scale Assessment of the Potential for Shallow Geothermal Energy Development Using Vertical Ground Source Heat Pumps," Energies, MDPI, vol. 17(17), pages 1-17, August.
    12. Idroes, Ghalieb Mutig & Hardi, Irsan & Hilal, Iin Shabrina & Utami, Resty Tamara & Noviandy, Teuku Rizky & Idroes, Rinaldi, 2024. "Economic growth and environmental impact: Assessing the role of geothermal energy in developing and developed countries," Innovation and Green Development, Elsevier, vol. 3(3).
    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. Tongyu Meng & Jamie Newth & Christine Woods, 2022. "Ethical Sensemaking in Impact Investing: Reasons and Motives in the Chinese Renewable Energy Sector," Journal of Business Ethics, Springer, vol. 179(4), pages 1091-1117, September.
    2. Monasterolo, Irene & de Angelis, Luca, 2020. "Blind to carbon risk? An analysis of stock market reaction to the Paris Agreement," Ecological Economics, Elsevier, vol. 170(C).
    3. Joshua Sunday Riti & Deyong Song & Yang Shu & Miriam Kamah & Agya Adi Atabani, 2018. "Does renewable energy ensure environmental quality in favour of economic growth? Empirical evidence from China’s renewable development," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(5), pages 2007-2030, September.
    4. Ackermann, Simon & Szabo, Andrei & Bamberger, Joachim & Steinke, Florian, 2022. "Design and optimization of performance guarantees for hybrid power plants," Energy, Elsevier, vol. 239(PA).
    5. Semmler, Willi & Di Bartolomeo, Giovanni & Minooei Fard, Behnaz & Braga, Joao Paulo, 2022. "Limit pricing and entry game of renewable energy firms into the energy sector," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 179-190.
    6. Radulescu, Doina & Sulger, Philippe, 2022. "Interdependencies between countries in the provision of energy," Energy Economics, Elsevier, vol. 107(C).
    7. Mazzucato, Mariana & Semieniuk, Gregor, 2018. "Financing renewable energy: Who is financing what and why it matters," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 8-22.
    8. Michaela Makešová & Michaela Valentová, 2021. "The Concept of Multiple Impacts of Renewable Energy Sources: A Critical Review," Energies, MDPI, vol. 14(11), pages 1-21, May.
    9. Albino, Vito & Ardito, Lorenzo & Dangelico, Rosa Maria & Messeni Petruzzelli, Antonio, 2014. "Understanding the development trends of low-carbon energy technologies: A patent analysis," Applied Energy, Elsevier, vol. 135(C), pages 836-854.
    10. Bertsch, Valentin & Di Cosmo, Valeria, 2018. "Are Renewables Profitable in 2030? A Comparison between Wind and Solar across Europe," ESP: Energy Scenarios and Policy 276178, Fondazione Eni Enrico Mattei (FEEM).
    11. Evangelia Karasmanaki & Konstantinos Ioannou & Georgios Siakas & Spyros Galatsidas & Georgios Tsantopoulos, 2025. "A Qualitative Analysis of Factors Leading to the Adoption of Residential Photovoltaics," Energies, MDPI, vol. 18(8), pages 1-18, April.
    12. Escoffier, Margaux & Hache, Emmanuel & Mignon, Valérie & Paris, Anthony, 2021. "Determinants of solar photovoltaic deployment in the electricity mix: Do oil prices really matter?," Energy Economics, Elsevier, vol. 97(C).
    13. Evangelia Karasmanaki & Spyridon Galatsidas & Georgios Tsantopoulos, 2019. "An Investigation of Factors Affecting the Willingness to Invest in Renewables among Environmental Students: A Logistic Regression Approach," Sustainability, MDPI, vol. 11(18), pages 1-18, September.
    14. Kathleen M. Saul & John H. Perkins, 2022. "A new framework for environmental education about energy transition: investment and the energy regulatory and industrial complex," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 12(1), pages 149-163, March.
    15. Laktuka, Krista & Pakere, Ieva & Kalnbalkite, Antra & Zlaugotne, Beate & Blumberga, Dagnija, 2023. "Renewable energy project implementation: Will the Baltic States catch up with the Nordic countries?," Utilities Policy, Elsevier, vol. 82(C).
    16. Kveselis, Vaclovas & Dzenajavičienė, Eugenija Farida & Masaitis, Sigitas, 2017. "Analysis of energy development sustainability: The example of the lithuanian district heating sector," Energy Policy, Elsevier, vol. 100(C), pages 227-236.
    17. Overholm, Harald, 2015. "Spreading the rooftop revolution: What policies enable solar-as-a-service?," Energy Policy, Elsevier, vol. 84(C), pages 69-79.
    18. Faissal Jelti & Amine Allouhi & Mahmut Sami Büker & Rachid Saadani & Abdelmajid Jamil, 2021. "Renewable Power Generation: A Supply Chain Perspective," Sustainability, MDPI, vol. 13(3), pages 1-22, January.
    19. Tang, Yumei & Chen, Xihui Haviour & Sarker, Provash Kumer & Baroudi, Sarra, 2023. "Asymmetric effects of geopolitical risks and uncertainties on green bond markets," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    20. Blankenberg, Ann-Kathrin & Gottschalk, Jonas F. A., 2018. "Is socially responsible investing (SRI) in stocks a competitive capital investment? A comparative analysis based on the performance of sustainable stocks," University of Göttingen Working Papers in Economics 349, University of Goettingen, Department of Economics.

    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:gam:jeners:v:18:y:2025:i:7:p:1590-:d:1618081. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.