Digital Infrastructure Efficiency and Carbon Rebound Risk: Cross−Country Evidence for Sustainable Transitions from 39 Economies, 2018–2024

The synergistic transition toward digital transformation and green development has been widely regarded as a core pathway to achieving sustainable development in knowledge production. Using balanced panel data from 39 economies covering 2018–2024, this study employed a two-way fixed-effects model to examine the associations of the energy efficiency of digital infrastructure and the energy structure with carbon intensity (CI). The findings showed that: (1) Reductions in Power Usage Effectiveness (PUE) values were significantly associated with higher macro-level CI (coefficient = −2.1564, p < 0.05), which is consistent with the possibility of a rebound effect in the digital sector. Further, time-series discontinuity tests further suggested that the surge in AI computing power, especially in 2023–2024, may have coincided with a structural shift in this relationship (Chow test, p < 0.05). (2) A Panel Threshold Regression (PTR) identified an optimal renewable energy threshold at 59.82%. Crucially, the carbon rebound effect remained highly significant across both high and low green power regimes, demonstrating that supply-side energy transition alone cannot fully absorb the exponential carbon footprint of digital expansion. Furthermore, Instrumental Variable (IV-2SLS) and Placebo Break Tests confirmed the strict validity of these findings. (3) The emission-reduction benefits related to digital knowledge spillovers appeared to be subject to time lags and a possible energy lock in effect, while current environmental policies and carbon pricing mechanisms appear to impose insufficient constraints. This study provides a crucial quantitative framework for monitoring and evaluating the environmental sustainability of the ICT sector. By highlighting the limitations of pure supply-side greening and the necessity of absolute carbon caps, our findings offer integrated policy approaches to align the exponential growth of Generative AI with global sustainable development goals.

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Journal
Sustainability
Published
2026-06-16
DOI
https://doi.org/10.3390/su18126216
Primary Topic
Energy, Environment, and Transportation Policies
Type
article
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article

Digital Infrastructure Efficiency and Carbon Rebound Risk: Cross−Country Evidence for Sustainable Transitions from 39 Economies, 2018–2024

Jinghui Zhan, Johnny F. I. Lam, Xieqihua Liu, Xiangdong Liu et al.
Sustainability
Energy, Environment, and Transportation Policies
article

Digital Infrastructure Efficiency and Carbon Rebound Risk: Cross−Country Evidence for Sustainable Transitions from 39 Economies, 2018–2024

Jinghui Zhan, Johnny F. I. Lam, Xieqihua Liu, Xiangdong Liu, Sirui Li
article en

Abstract

The synergistic transition toward digital transformation and green development has been widely regarded as a core pathway to achieving sustainable development in knowledge production. Using balanced panel data from 39 economies covering 2018–2024, this study employed a two-way fixed-effects model to examine the associations of the energy efficiency of digital infrastructure and the energy structure with carbon intensity (CI). The findings showed that: (1) Reductions in Power Usage Effectiveness (PUE) values were significantly associated with higher macro-level CI (coefficient = −2.1564, p < 0.05), which is consistent with the possibility of a rebound effect in the digital sector. Further, time-series discontinuity tests further suggested that the surge in AI computing power, especially in 2023–2024, may have coincided with a structural shift in this relationship (Chow test, p < 0.05). (2) A Panel Threshold Regression (PTR) identified an optimal renewable energy threshold at 59.82%. Crucially, the carbon rebound effect remained highly significant across both high and low green power regimes, demonstrating that supply-side energy transition alone cannot fully absorb the exponential carbon footprint of digital expansion. Furthermore, Instrumental Variable (IV-2SLS) and Placebo Break Tests confirmed the strict validity of these findings. (3) The emission-reduction benefits related to digital knowledge spillovers appeared to be subject to time lags and a possible energy lock in effect, while current environmental policies and carbon pricing mechanisms appear to impose insufficient constraints. This study provides a crucial quantitative framework for monitoring and evaluating the environmental sustainability of the ICT sector. By highlighting the limitations of pure supply-side greening and the necessity of absolute carbon caps, our findings offer integrated policy approaches to align the exponential growth of Generative AI with global sustainable development goals.

SustainabilityVol. 18(12)
Macao Polytechnic University (MO)
Industry, innovation and infrastructure
Openalex Percentile: Top 19%
Energy, Environment, and Transportation Policies
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