Is there a direct benefit of using electronic commerce and electronic banking in mitigating climate change?

Abstract The main objective of the study is to highlight the impact that the use of electronic commerce (e-commerce), electronic banking (e-banking) services have on climate change in European Union (EU) countries. Thus, we built a panel model to evaluate the correlations between e-commerce, e–banking, electronic sales channels, and climate change mitigation during 2011–2022 period for the EU countries. Furthermore, we applied the Fully Modified Ordinary Least Squares (FMOLS) method including three independent variables that evaluate the use of digital commerce applications and the dependent variable for climate change. A significant revelation of the study is the positive contribution of e-commerce activities to climate change mitigation. Furthermore, the study emphasizes the role of e-banking in decreasing the consequences of climate change. However, the study also uncovers a more complex aspect regarding electronic sales channels. It finds that not all forms of electronic sales are effective in reducing climate change impacts. Thus, the study highlights the potential benefits of e-commerce and e-banking in the context of climate change mitigation, while also warning against a one-size-fits-all approach to the adoption of digital commerce models. These findings have important implications for policymakers, businesses, and researchers aiming to align digital transformation with sustainable development goals.