Abstract
This study explores the effect of digital economy on ecological footprint in 37 Organization for Economic Co-operation and Development (OECD) economies between 2007 and 2022. We employed different econometric models and techniques, such as the panel regression model, the polynomial quadratic model, the modified structural equation model, and the Sobel test. Our study results reveal that digital development directly reduces ecological footprint through improved energy-efficient data centers, optimized production processes, and real-time resource management. Additionally, the relationship between digital development and ecological footprint shows an inverted U-shaped pattern. This implies that the growth of digital economy initially increases the ecological footprint due to the resource-intensive nature of setting up digital infrastructure, including data centers and communication networks. However, as digital development matures, efficiency gains from technological advancements lead to a reduction in the ecological footprint. The mediation analysis reveals that economic growth, green technology adoption, and industrial structure transformation significantly mediate the nexus between digital economy and ecological footprint at a proportion of 85.2%, 31%, and 65.6%, respectively. From the findings of our study, significant policy implications are proposed to enhance environmental quality.
Published Version
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