Digitalisation and the Renewable‐Energy Share: Evidence From 156 Countries, 2010–2022

Abstract

Digitalisation has become an important component of the energy transition by improving information exchange, system coordination, and technological innovation. However, its relationship with renewable-energy deployment remains complex because digital technologies can generate both enabling effects and additional energy demand. This study investigates the association between national digital-system capacity and renewable-energy transition using an unbalanced panel of 156 countries from 2010 to 2022. A multidimensional digitalisation index is constructed using entropy-weighted TOPSIS based on six indicators covering digital connectivity, infrastructure, and technology-related productive capacity. Renewable-energy transition is measured by the renewable-energy share in total final energy consumption, corresponding to Sustainable Development Goal (SDG). The empirical analysis combines fixed-effects models, common-correlated-effects estimation, dynamic-panel specifications, alternative index constructions, and spatial models to examine the robustness and contextual dependence of the relationship. The results show that higher digital-system capacity is positively associated with renewable-energy share in country fixed-effects models. A 0.1-point increase in the digitalisation index corresponds to approximately 3.9% higher renewable-energy share. The estimated association becomes smaller after accounting for common time variation and unobserved common factors, highlighting the importance of distinguishing national digital development from broader international trends. Formal interaction tests further reveal stronger associations in high-emissions contexts and significant differences across income groups. A CO2-related pathway decomposition identifies a significant emissions-related component, while the result is interpreted as a contemporaneous relationship rather than causal mediation. Overall, the findings indicate that digitalisation can contribute to renewable-energy transition, but its effectiveness depends on technological diffusion, structural conditions, and the characteristics of national energy systems.