The Digital Economy’s Contribution to Advancing Sustainable Economic Development

The expansion of the digital economy motivated researchers to precisely identify its effects and impact on all factors that support sustainable development in nations. This study examines the role of the digital economy in promoting sustainable economic development and interplays with renewable energy development in European countries over the period 1996–2020. The first aim is to provide a theoretical approach by reviewing the most relevant studies on the issue. The second aim is to develop a linear regression model for evaluating the effects of the digital economy on sustainable economic development and the interplays with the environment. The fixed-effect estimation technique for panel data models will be chosen to control for heterogeneity. The results confirm the hypothesis of a positive impact of the digital economy on economic development and environmental performance. This paper can be considered a useful viewpoint in understanding the complex relationship of the digital economy’s contribution to advancing sustainable economic development and promoting environmental performance, thus adding to the existing literature.