Abstract
Digital transformation and environmental sustainability are increasingly shaping firms’ strategies and
operational practices. This study examines whether firms’ digital capabilities are associated with the adoption of
environmental practices using firm-level data from the World Bank Enterprise Survey conducted in Romania. The
analysis focuses on two dimensions of environmental engagement: monitoring CO₂ emissions and implementing
measures aimed at reducing emissions or improving energy efficiency. A digitalization index capturing firms’ adoption
of basic digital technologies is constructed and included in binary logistic regression models alongside several firm
level characteristics. The results indicate that digitalization does not significantly influence firms’ decisions to monitor
CO₂ emissions. However, firms with higher levels of digital adoption are significantly more likely to implement
measures aimed at improving energy efficiency or reducing emissions. Firm size, export activity, market competition,
and sector characteristics also influence the likelihood of adopting environmental measures. These findings suggest
that digital capabilities may facilitate the implementation of environmentally responsible practices and highlight the
importance of firm characteristics in shaping environmental behavior in emerging economies.
operational practices. This study examines whether firms’ digital capabilities are associated with the adoption of
environmental practices using firm-level data from the World Bank Enterprise Survey conducted in Romania. The
analysis focuses on two dimensions of environmental engagement: monitoring CO₂ emissions and implementing
measures aimed at reducing emissions or improving energy efficiency. A digitalization index capturing firms’ adoption
of basic digital technologies is constructed and included in binary logistic regression models alongside several firm
level characteristics. The results indicate that digitalization does not significantly influence firms’ decisions to monitor
CO₂ emissions. However, firms with higher levels of digital adoption are significantly more likely to implement
measures aimed at improving energy efficiency or reducing emissions. Firm size, export activity, market competition,
and sector characteristics also influence the likelihood of adopting environmental measures. These findings suggest
that digital capabilities may facilitate the implementation of environmentally responsible practices and highlight the
importance of firm characteristics in shaping environmental behavior in emerging economies.
Cuvinte cheie
digitalization; environmental practices; environmental sustainability; firm-level analysis; emerging economies; Romania
Istoric articol
Publicat
26.06.2026
Informații autori
Citare recomandată
ANA-GABRIELA BABUCEA (2026). DIGITAL CAPABILITIES AND ENVIRONMENTAL PRACTICES: FIRM-LEVEL EVIDENCE FROM ROMANIA. Constantin Brâncuși University of Târgu Jiu Economics Series, 1(3), 58–69. https://doi.org/10.65631/jes.3.2026.4
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