Decoding sustainable growth: The role of digital technology and entrepreneurship in carbon reduction
Entrepreneurship is instrumental in promoting innovation towards sustainable economic growth. Through information and communication technology (ICT) access and development, digitalization enhances entrepreneurship, fostering the path to sustainable economic growth. However, the literature results ev...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-01-01
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| Series: | Sustainable Technology and Entrepreneurship |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2773032824000269 |
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| author | Zeeshan Arshad Mara Madaleno Ana I Lillebø Helena Vieira |
| author_facet | Zeeshan Arshad Mara Madaleno Ana I Lillebø Helena Vieira |
| author_sort | Zeeshan Arshad |
| collection | DOAJ |
| description | Entrepreneurship is instrumental in promoting innovation towards sustainable economic growth. Through information and communication technology (ICT) access and development, digitalization enhances entrepreneurship, fostering the path to sustainable economic growth. However, the literature results evidenced thus far are mixed and do not consider simultaneously the exploration of these cumulative relationships, a gap the present article tries to fill in. Herein is explored the relationship between entrepreneurial activities, ICT, energy consumption, economic growth, and environmental degradation, examining the impact of digitalization and entrepreneurial activities on carbon degradation, with the corresponding effect on the environment, considering a panel of 16 EU countries between 2001 and 2020, using cross-sectional and causality models to account for short and long-run effects. This study also validates these economies' Environmental Kuznets Curve (EKC) while finding critical cross-sectional dependencies. Despite finding that ICT and entrepreneurial activities improved environmental quality, our work points out that ICT and entrepreneurial activities deteriorated the environment. All the macroeconomic variables evidence long-run relationships with carbon degradation or environmental quality. However, no causality is found between ICT and economic growth, nor between entrepreneurship and economic growth, therefore challenging the idea that growth boosts ICT or entrepreneurship activities in EU countries. Important policy directions are presented considering the results that may foster better routes to sustainable growth and development for EU countries. |
| format | Article |
| id | doaj-art-3cf85ee5a3dc42bf8303ec2896ddaba8 |
| institution | Kabale University |
| issn | 2773-0328 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Sustainable Technology and Entrepreneurship |
| spelling | doaj-art-3cf85ee5a3dc42bf8303ec2896ddaba82025-01-12T05:26:22ZengElsevierSustainable Technology and Entrepreneurship2773-03282025-01-0141100094Decoding sustainable growth: The role of digital technology and entrepreneurship in carbon reductionZeeshan Arshad0Mara Madaleno1Ana I Lillebø2Helena Vieira3CESAM – Centre for Environmental and Marine Studies, Department of Environment and Planning, University of Aveiro, Aveiro, Portugal; Corresponding author.GOVCOPP - Research Unit on Governance, Competitiveness and Public Policy, DEGEIT - Department of Economics, Management, Industrial Engineering and Tourism, University of Aveiro, Campus Universitario de Santiago, 3810-193 Aveiro, PortugalECOMARE, CESAM-Centre for Environmental and Marine Studies, Department of Biology, Santiago University Campus, University of Aveiro, 3810-193 Aveiro, PortugalCESAM – Centre for Environmental and Marine Studies, Department of Environment and Planning, University of Aveiro, Aveiro, PortugalEntrepreneurship is instrumental in promoting innovation towards sustainable economic growth. Through information and communication technology (ICT) access and development, digitalization enhances entrepreneurship, fostering the path to sustainable economic growth. However, the literature results evidenced thus far are mixed and do not consider simultaneously the exploration of these cumulative relationships, a gap the present article tries to fill in. Herein is explored the relationship between entrepreneurial activities, ICT, energy consumption, economic growth, and environmental degradation, examining the impact of digitalization and entrepreneurial activities on carbon degradation, with the corresponding effect on the environment, considering a panel of 16 EU countries between 2001 and 2020, using cross-sectional and causality models to account for short and long-run effects. This study also validates these economies' Environmental Kuznets Curve (EKC) while finding critical cross-sectional dependencies. Despite finding that ICT and entrepreneurial activities improved environmental quality, our work points out that ICT and entrepreneurial activities deteriorated the environment. All the macroeconomic variables evidence long-run relationships with carbon degradation or environmental quality. However, no causality is found between ICT and economic growth, nor between entrepreneurship and economic growth, therefore challenging the idea that growth boosts ICT or entrepreneurship activities in EU countries. Important policy directions are presented considering the results that may foster better routes to sustainable growth and development for EU countries.http://www.sciencedirect.com/science/article/pii/S2773032824000269Digital technologyCausality modelsCarbon emissionsClimate changeSustainable DevelopmentEntrepreneurship |
| spellingShingle | Zeeshan Arshad Mara Madaleno Ana I Lillebø Helena Vieira Decoding sustainable growth: The role of digital technology and entrepreneurship in carbon reduction Sustainable Technology and Entrepreneurship Digital technology Causality models Carbon emissions Climate change Sustainable Development Entrepreneurship |
| title | Decoding sustainable growth: The role of digital technology and entrepreneurship in carbon reduction |
| title_full | Decoding sustainable growth: The role of digital technology and entrepreneurship in carbon reduction |
| title_fullStr | Decoding sustainable growth: The role of digital technology and entrepreneurship in carbon reduction |
| title_full_unstemmed | Decoding sustainable growth: The role of digital technology and entrepreneurship in carbon reduction |
| title_short | Decoding sustainable growth: The role of digital technology and entrepreneurship in carbon reduction |
| title_sort | decoding sustainable growth the role of digital technology and entrepreneurship in carbon reduction |
| topic | Digital technology Causality models Carbon emissions Climate change Sustainable Development Entrepreneurship |
| url | http://www.sciencedirect.com/science/article/pii/S2773032824000269 |
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