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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
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    References listed on IDEAS

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