The Impact of Cloud Computing on Mass and Energy Flows: Greenhouse Gas Emissions in the IT and Communications Sectors at the European Level (2014-2021)

Abstract

In the context of accelerated digitization and the transition to sustainability, this study explores the relationship between the use of cloud computing services and greenhouse gas (GHG) emissions in the IT and communications sectors at the European level using panel data provided by Eurostat for the period 2014–2021. The initial set included 14 countries, but due to incomplete data, the final analysis was performed on a consistent and complete dataset comprising 8 countries: Bulgaria, Cyprus, Denmark, Hungary, Latvia, Norway, Poland, and Romania. The applied methodology includes VAR and VECM econometric models, the Granger causality test, impulse response functions, and variance decomposition. The results show a long-term cointegrating relationship between the variables, highlighting the existence of mass and energy transfer to centralized infrastructures such as data centers. The IT subsectors (J62_J63) demonstrate superior efficiency in reducing GHG emissions compared to the general communications sector (J), highlighting the positive impact of a high level of digitization. Although the research provides valuable insights into the relationship between digitization and sustainability, a major limitation is that not all EU countries are represented. This study provides actionable policy recommendations to minimize the ecological impact of digital technologies and enhance resource efficiency in the green transition era.