Author(s): Adedeji Daniel Gbadebo
This study investigates the role of digitalization in moderating the growth of carbon emissions within selected German economies. Recognizing the persistent reliance on fossil fuels and the challenges associated with a full-scale renewable energy transition, this research examines whether digital technology adoption, proxied by internet penetration, can effectively curb the annual growth rates of carbon emissions. Using dynamic panel data methods on recent data, the findings reveal that digitalization reduces emission growth both directly and indirectly by enhancing natural resource productivity, accelerating the greening of energy and financial sectors, strengthening institutional governance, and mitigating the adverse environmental impacts of urbanization. The results underscore the necessity for integrated policy frameworks that leverage digital transformation alongside environmental and institutional reforms to achieve sustainable carbon emission trajectories.