Digital transformation in environmental management: Strengthening resource efficiency and climate resilience in Europe

This study examines the research question of whether digitalization (IT) facilitates the efficient use of natural resources, supporting sustainable growth and climate change mitigation in Europe. To answer this literature-identified gap, the moderating role of technology and natural resource rents was considered in European countries that manage natural resources. A dual effect on climate change was observed, as measured by the amount of methane emissions. Using data from 26 European countries (2007–2021), we apply panel quantile regression and traditional econometric methods to assess the impact of information technology (IT), natural resource rents, and their interaction on methane emissions. Results support the mitigating role of the proposed interaction term in reducing methane emissions, suggesting that technological progress must be prioritized in natural resources planning, management, and exploitation to achieve climate change mitigation.