Harnessing a Renewable Resource for Sustainability: The Role of Geothermal Energy in Italy’s Business Sector

Addressing critical challenges such as climate change, environmental degradation, and resource depletion requires a swift transition to efficient and environmentally friendly energy solutions. Among these, geothermal energy is recognized for its dependability, low environmental impact, and versatility. This study investigates the role of geothermal energy in Italy’s business sector, examining its impact on companies and social perception. It specifically evaluates how communicating geological, hydrological, and atmospheric risks associated with geothermal projects influences firms’ likelihood of experiencing social acceptance challenges. Additionally, this research quantifies the impact of geothermal energy adoption on companies’ energy costs and CO2 emissions. The analysis further explores the long-term implications of expanding the use of this renewable resource through sensitivity analysis, focusing on its effects on emissions and costs. The findings indicate that firms communicating geothermal-related risks are less likely to experience social acceptance challenges compared to those that do not. Moreover, this study shows that the use of geothermal energy positively impacts firms’ business and environmental performance by reducing energy costs and CO2 emissions. Sensitivity analysis demonstrates that increasing the proportion of geothermal energy usage amplifies these benefits, thereby enhancing firms’ competitiveness. This research provides a comprehensive framework for promoting geothermal energy integration in business operations, offering valuable insights to support the global shift toward sustainable energy systems.