Nexus Between Digital Economy and Environmental Sustainability in BRICS: Does Green Innovation Matter?

IF 12.5 1区管理学 Q1 BUSINESS

Business Strategy and The Environment Pub Date : 2025-03-20 DOI:10.1002/bse.4243

Jun Wen, Hamid Mahmood, Samia Khalid, Muhammad Zakaria

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引用次数: 0

Abstract

The digital economy has emerged as a significant driver of development in many countries, yet its impact on environmental sustainability remains a subject of debate among experts. Unlike previous studies, this research examines the influence of the digital economy on environmental sustainability while investigating the mediating role of green innovation in this relationship. Using a panel dataset from BRICS countries covering the period 2004–2020, this study explores the impact of the digital economy by employing digital finance and digital infrastructure as proxies. Advanced econometric techniques, including the Cup‐FM, Cup‐BC, AMG, and CS‐ARDL methods, are applied to ensure robust panel data analysis. The findings reveal that, in the long run, digital finance, digital infrastructure, and green innovation exhibit a significant negative relationship with environmental degradation, thereby contributing positively to environmental sustainability in BRICS economies. Furthermore, mediation analysis using the Sobel, Aroian, and Goodman tests confirms that green innovation effectively mediates the impact of digital finance and digital infrastructure on environmental sustainability. However, the results also indicate that economic growth and population growth have a significant positive relationship with environmental degradation, highlighting their adverse effects on sustainability. Based on these findings, it is crucial for BRICS countries to implement policies and programs that foster the growth of digital finance and digital infrastructure as tools for promoting environmental sustainability. Policymakers should prioritize investment in digital finance and infrastructure to drive green innovation and support eco‐friendly manufacturing. Additionally, addressing digital access disparities to ensure inclusive participation in sustainable initiatives.

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来源期刊

Business Strategy and The Environment Multiple-

CiteScore

22.50

自引率

19.40%

发文量

336

期刊介绍： Business Strategy and the Environment (BSE) is a leading academic journal focused on business strategies for improving the natural environment. It publishes peer-reviewed research on various topics such as systems and standards, environmental performance, disclosure, eco-innovation, corporate environmental management tools, organizations and management, supply chains, circular economy, governance, green finance, industry sectors, and responses to climate change and other contemporary environmental issues. The journal aims to provide original contributions that enhance the understanding of sustainability in business. Its target audience includes academics, practitioners, business managers, and consultants. However, BSE does not accept papers on corporate social responsibility (CSR), as this topic is covered by its sibling journal Corporate Social Responsibility and Environmental Management. The journal is indexed in several databases and collections such as ABI/INFORM Collection, Agricultural & Environmental Science Database, BIOBASE, Emerald Management Reviews, GeoArchive, Environment Index, GEOBASE, INSPEC, Technology Collection, and Web of Science.