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Digitalization of the economy and resource efficiency for meeting the ESG goals

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  • Zhou, Hailing
  • Liu, Ji

Abstract

This study investigates the impact of digitalization on the economy and its relationship with resource efficiency in the pursuit of environmental, social, and governance (ESG) goals among 450 publicly listed companies in the G7 countries from 2015 to 2021. The PMG estimation technique is employed to analyze the data. The findings reveal that higher expenditure on information and communication technology (ICT) is associated with increased investments in ESG, indicating the positive influence of digitalization on sustainability efforts. Conversely, higher energy expenditure has a negative effect on ESG investing, emphasizing the significance of energy efficiency in achieving ESG goals. Moreover, the study identifies total assets and stock price as significant factors driving ESG investments, highlighting the importance of financial capacity and market sentiment. However, concerns arise regarding the allocation of loans received, suggesting insufficient green financing for ESG initiatives. To promote ESG investing through digitalization and resource efficiency, practical policies such as incentivizing the deployment of green energy and implementing efficient emission taxation are recommended. These measures can foster sustainable practices in publicly listed companies.

Suggested Citation

  • Zhou, Hailing & Liu, Ji, 2023. "Digitalization of the economy and resource efficiency for meeting the ESG goals," Resources Policy, Elsevier, vol. 86(PA).
    • Handle: RePEc:eee:jrpoli:v:86:y:2023:i:pa:s0301420723009108
    DOI: 10.1016/j.resourpol.2023.104199
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    Cited by:

    1. Li, Yiping & Zheng, Lanxing & Xie, Chang & Fang, Jiming, 2024. "Big data development and enterprise ESG performance: Empirical evidence from China," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 742-755.
    2. Wang, Haijun & Jiao, Shuaipeng & Ge, Chen & Sun, Guanglin, 2024. "Corporate ESG rating divergence and excess stock returns," Energy Economics, Elsevier, vol. 129(C).
    3. Cheng, Yiming & Zeng, Bo & Lin, Weixing, 2024. "Heterogenous effects of inclusive digital economy and resource distribution mismatch on corporate ESG performance in China," Resources Policy, Elsevier, vol. 92(C).

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    More about this item

    Keywords

    Resource efficiency; ESG investing; Digital transformation; Energy expenditure; G7 economies;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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