Digital economy, energy trade, and the path to sustainability: A G7 perspective

Abstract

This study develops an integrated analytical framework to investigate how the digital economy influences the energy trilemma, comprising energy security, energy equity, and environmental sustainability. Using a balanced panel dataset of G7 countries spanning 2000–2023, we employ panel regression techniques and extensive robustness checks to quantify the digital economy's impact on each dimension of the trilemma. Our results reveal a significant positive effect, suggesting that digitalization can enhance energy efficiency and sustainability while improving access and reliability. We further examine the mediating roles of energy trade cooperation, market openness, and energy structure adjustment in amplifying these effects. The findings underscore the strategic importance of aligning digital economy policies with energy sector reforms to address long-term energy challenges. Policy recommendations include fostering cross-border energy cooperation, enhancing digital trade infrastructure, accelerating renewable energy adoption, and implementing targeted incentives to fully leverage digitalization for sustainable energy development