Supply chain digitalization and energy efficiency (gas and oil): How do they contribute to achieving carbon neutrality targets?

Abstract

Considering the global awareness regarding the issue of climate change and global warming, several nations, including the United States, are focusing on achieving carbon neutrality goals. In doing so, this study examines how supply chain digitalization, green technologies, and energy efficiency influence greenhouse gas (GHG) emissions in the United States. This is the first empirical study evaluating how supply chain digitalization and energy efficiency influence GHG emissions, thus filling the gap in the literature. The study applied several quantile-based techniques, including wavelet quantile regression, quantile causality, and quantile regressions, as robustness checks used data spanning the period between 2000Q1 to 2022Q4. The results show that (i) across all periods and quantiles, a surge in supply chain digitalization intensifies GHG emissions in the United States; (ii) across all periods and quantiles, energy efficiency (oil and gas) lessens GHG emissions; (iii) across all periods and quantiles economic growth and financial globalization mitigate GHG emissions; and (iv) all the regressors can significantly predict GHG emissions. Based on these findings, policymakers in the United States should prioritize investments in green technologies and energy efficiency improvements, offering tax incentives, grants, and subsidies to businesses that adopt such practices.