Interplay of Digitalization, Energy Transition, and Economic Transformation

Open for manuscript submission: February 15, 2026
Manuscript submission deadline: August 15, 2026

Introduction

Global economy is experiencing a structural transformation at the intersection of two powerful megatrends: digitalization and transition to sustainable energy systems. The integration of digital technologies, such as artificial intelligence (AI), Internet of Things (IoT), blockchain, and the data analytics, into energy value chains is reshaping the production systems, business models, and governance mechanisms. Simultaneously, the global push for the decarbonization and widespread adoption of renewable energy sources are driving deep changes in the industrial policy, infrastructure investment, labor markets, and international trade (Kraus et al., 2021; Goldfarb et al., 2023). While digitalization and energy transition have been widely studied in isolation, interplay between them and their joint effect on the economic transformation remains underexplored (Xiao et al., 2024). This convergence not only brings opportunities for innovation and sustainability but also raises concerns about inequality, institutional readiness, technological lock-in, and uneven development. In the European context, stringent decarbonization targets and complex digital compliance requirements such as the GDPR and the EU Digital Services Act have heightened concerns over declining competitiveness. Member states, particularly manufacturing-heavy economies like Germany and Poland, face high structural adjustment costs. These are further exacerbated by regulatory fragmentation and disparities in fiscal capacity across the EU.

Developing economies face additional hurdles as they leverage their digital capacity to accelerate green transition, developing nations may struggle with the insufficient infrastructure and policy coordination (Lythreatis et al., 2022). Germany’s green transition contributed to the rising industrial energy costs, leading to concerns over the export competitiveness (BMWK, 2023). Digitization in banking has displaced over 200,000 jobs in EU since 2015, with uneven reskilling efforts (ECB Reports, 2022). AI adoption in logistics boosted efficiency but the widened regional income gaps where manual labor was prevalent (Acemoglu & Restrepo, 2020).

This special issue welcomes studies grounded in the macroeconomic theory that links real economy to financial and macro stability. For instance, loss of competitiveness and economic mismanagement under twin transitions may amplify the sovereign risk and capital outflows (e.g., Mundell-Fleming model extensions or the modern fiscal dominance theories). Rapid transformation increases cost of policy errors, making the forward-looking economic governance essential. Among relevant frameworks are: Schumpeterian theory of innovation, which explains how technological advancement drives economic transformation but may result in creative destruction and market reconfiguration (Aghion & Howitt, 1998). Ecological modernization theory, which posits that environmental reform is compatible with the industrial development through the technological innovation and the institutional adaptation (Mol & Spaargaren, 2000). Sociotechnical transitions theory, including Multi-Level Perspective (MLP), which frames the sustainability transitions as interactions among the niche innovations, socio-technical regimes, and broader the landscape pressures (Geels, 2002). Endogenous growth theory, which explores how the knowledge, R&D, and digital infrastructure contribute to the long-run economic performance (Romer, 1990). Political economic perspectives, which consider role of the power asymmetries, governance, and policy coalitions in shaping the technological and energy outcomes (Meckling et al., 2015). Furthermore, the interplay between digitalization and energy transition demands greater attention to macro-financial stability (Paul, 2024). Theories linking real-sector competitiveness to sovereign risk such as fiscal dominance and Mundell-Fleming model extensions highlight how structural transformation accelerates the costs of policy inaction or missteps. Countries with low competitiveness or poor coordination risk rapid increases in public debt, capital flight, and long-term stagnation.

Despite increasing interest, existing literature often lacks the integration of these perspectives in a unified framework. Despite the rising interest in twin transitions, most studies underplay their macroeconomic implications. There is a need to assess how they influence GDP growth volatility, income distribution, public debt trajectories, and external competitiveness. Economic stories are no longer sectoral, it spans fiscal resilience, social insurance, and structural transformation at national level. There is a growing need for empirical and theoretical studies that explain how digitalization and energy transition co-evolve and influence economic development across the diverse institutional, geographic, and sectoral contexts.

Addressing this interplay is not only academically significant but also policy relevant. With global commitments to the net-zero emissions and rapid digital adoption, understanding dual-transition dynamics is essential for designing the inclusive, resilient, and future-oriented economic systems. Current gaps in literature include:

• Lack of integrative models capturing feedback loops between the digital adoption and energy innovation
• Limited analysis of labor market adjustment to concurrent automation and decarbonization disruptions.
• Insufficient data on performance of digital tools in advancing energy equity and access.
• Under-theorized institutional and governance responses to the complex transition challenges including Macroeconomic policy (monetary and fiscal policy), Industrial strategy and competitiveness in dual-transition economies, and trade regulation and investment frameworks affected by decarbonization and digital platforms.
• Lack of empirical research on how fiscal subsidies for renewables affect the public debt and long-term budget sustainability
• Limited evaluation of how central banks incorporate the digital infrastructure risk into monetary policy frameworks
• Underdeveloped analysis on social policy implications of the digital displacement and green job transition support

This special issue aims to fill these gaps by fostering high-quality research on synergies, contradictions, and the trajectories emerging at crossroads of the digitalization, energy transition, and economic restructuring.

Scope of the special issue

We invite contributions that explore the economic dimensions of dual transitions through theoretical, empirical, or policy lenses. Submissions may cover, but are not limited to, the following topics:

• Intersections of digitalization, energy transition, and macroeconomic policy including industrial strategy, trade regulation, and investment frameworks
• Industrial policy and economic competitiveness in the dual-transition economies
• Labor market transformation under the combined digital and green transitions
• Socioeconomic inequalities in access to digital and sustainable energy technologies
• Financing mechanisms, green fintech, and digital investment platforms
• Regulation of digital platforms, carbon pricing, innovation incentives, and smart taxation including fiscal incentives for innovation, and market-based mechanisms (such as emissions trading and smart taxation), all within context of economic restructuring
• Digital technologies as enablers for clean energy adoption and grid management.
• Case studies on the national or sectoral strategies for integrated digital-energy transformation
• Role of institutional quality and governance in transition success
• Climate-smart trade and the digital supply chain innovations
• Environmental and social costs of the digital infrastructures (e.g., e-waste, energy consumption)
• Cross-country comparative assessments of the policy coherence and innovation diffusion
• Resilience of the small and medium-sized enterprises (SMEs) in adapting to twin transitions

Guest Editors

Dr. Afzal Ahmed Dar (Leading Guest Editor)
Department of Building, Civil and Environmental Engineering, Concordia University, Montreal, Canada
Google Scholar: https://scholar.google.com/citations?user=AhV4FJIAAAAJ&hl=en
ORCID: https://orcid.org/0000-0001-8823-4829
Email: afzalahmed.dar@concordia.ca

Dr. Saira Asif
Sustainable Process Integration Laboratory, SPIL, NETME Centre, Faculty of Mechanical Engineering, Brno University of Technology, Czech Republic.
Google Scholar:
https://scholar.google.com/citations?user=JdZVEVYAAAAJ&hl=en&oi=ao
ORCID: https://orcid.org/0000-0001-8185-0653
Email: asif@fme.vutbr.cz

Dr. Javaria Hameed
School of Economics, Liaoning University, Shenyang, China
Google Scholar: https://scholar.google.com/citations?user=2_w0f70AAAAJ&hl=en
ORCID: https://orcid.org/my-orcid?orcid=0000-0002-8088-0364
Emai: javariahameed@outlook.com

References

Acemoglu, D., & Restrepo, P. (2019). The wrong kind of AI? Artificial intelligence and the future of labor demand. Economics, 13(1), 1–42.
Alesina, A., Favero, C., & Giavazzi, F. (2019). Effects of austerity: Expenditure- and tax-based approaches. Journal of Economic Perspectives, 33(2), 141–162.
Feldstein, M. (2017). Underestimating the real growth of GDP, personal income, and productivity. Journal of Economic Perspectives, 31(2), 145–164.
Aghion, P., Howitt, P., Brant-Collett, M., & García-Peñalosa, C. (1998). Endogenous growth theory. MIT press.
Geels, F. W. (2002). Technological transitions as evolutionary reconfiguration processes: a multi-level perspective and a case-study. Research policy, 31(8-9), 1257-1274.
Goldfarb, A., Taska, B., & Teodoridis, F. (2023). Could machine learning be a general purpose technology? A comparison of emerging technologies using data from online job postings. Research Policy, 52(1), 104653.
Kraus, S., Jones, P., Kailer, N., Weinmann, A., Chaparro-Banegas, N., & Roig-Tierno, N. (2021). Digital transformation: An overview of the current state of the art of research. Sage Open, 11(3), 21582440211047576.
Lythreatis, S., Singh, S. K., & El-Kassar, A. N. (2022). The digital divide: A review and future research agenda. Technological Forecasting and Social Change, 175, 121359.
Meckling, J., Kelsey, N., Biber, E., & Zysman, J. (2015). Winning coalitions for climate policy. Science, 349(6253), 1170-1171.
Mol, A. P., & Spaargaren, G. (2000). Ecological modernisation theory in debate: A review. Environmental politics, 9(1), 17-49.
Paul Gertler, Brett Green, Catherine Wolfram, Digital Collateral, The Quarterly Journal of Economics, Volume 139, Issue 3, August 2024, Pages 1713–1766, https://doi.org/10.1093/qje/qjae003
Romer, P. M. (1990). Endogenous technological change. Journal of political Economy, 98(5, Part 2), S71-S102.
Xiao, A., Xu, Z., Skare, M., Qin, Y., & Wang, X. (2024). Bridging the digital divide: the impact of technological innovation on income inequality and human interactions. Humanities and Social Sciences Communications, 11(1), 1-18.

Carbon Emissions and Economic Transformation: Pathways to Green Growth in Post-Industrial Economies

Open for manuscript submission: December 1, 2025
Manuscript submission deadline: March 31, 2026

Citation: Politická ekonomie, Volume 76, Special issue, 2028

Introduction

In the current era, it is essential to address the critical need to integrate environmental sustainability with economic growth. Post-industrial economies must balance sustaining economic growth with reducing carbon emissions while the global community copes with increasing climate challenges. The concept of "green growth," which integrates economic development with environmental sustainability, has gained support as a framework for management to direct this transformation. Post-industrial economies continue to account for a significant portion of global carbon emissions despite their reduced reliance on traditional manufacturing. To achieve low-carbon growth, it is necessary to navigate complex structural transformations (Li, J., et al., 2025). Various channels are crucial for developing new policies that mitigate climate change, promote green energy, encourage sustainable prosperity, and maintain social equality during economic transitions (Chandel et al. 2025). The topics addressed in this issue are important for international efforts to develop inclusive, resilient, and sustainable economies in the future. Significant changes in economics have been occurring throughout post-industrial economies to reduce carbon emissions while pursuing a variety of economic growth initiatives. These changes focus on transitioning to renewable energy, low-carbon technologies, and sustainable consumption patterns. A framework to achieve environmental sustainability alongside economic development can be derived from green growth pathways (Wang, et al., 2025). Achieving a sustainable and equitable transition requires addressing underlying social and policy challenges. For complex economies, a detailed understanding of this process is crucial for effectively tackling climate change.

To address global pressures for climate change mitigation, the countries, especially those with established, post-industrial economies, must restructure and reassess their economic growth models (Ajoykumar, 2025). Although post-industrial economies’ structures have evolved to reduce some traditional sources of carbon emissions, challenges remain in achieving deep decarbonization that's consistent with the goals of the Paris Agreement and international sustainable development agendas. Post-industrial economies are characterized by a shift away from manufacturing and industrial production towards service-oriented and knowledge-based sectors. The idea of an economy that grows while conserving natural resources and reducing environmental degradation is presented by the concept of green growth, which challenges the long-held belief that environmental sustainability and economic prosperity are mutually exclusive (Lugo-Morin, 2025). In this transition, post-industrial economies face different challenges. Although their industrial bases are often less carbon-intensive compared to those of developing countries, their energy demands, consumer habits, and service sector activities nevertheless substantially raise carbon emissions (Ye et al., 2025). Furthermore, as global supply chains become more integrated, these economies face concerns such as carbon leakage, where reduced emissions in a country may be balanced by higher emissions in another because of outsourcing. The transition to green growth in this context requires essential changes in the economy that affect labor markets, social fairness, and regional development in combination with innovative technology and policy reform (Al-Masri et al. 2025).

The special issue specifically welcomes papers that provide valuable insights for researchers, practitioners, and policymakers while advancing theoretical understanding. By integrating academic studies with real-world evidence, the issue aims to address the development of effective plans that foster inclusive growth, climate resilience, and sustainable economic transformation.

Scope of the special issue

The aim of the special issue is to explore how the transformation of industrial economics is effectively controlled by promoting decarbonization without compromising economic growth and enhancing social cohesion. Contributions assessing the roles of clean technology innovation, changes in energy production and consumption, market-based and regulatory environmental policies, and the social aspects of green transitions are welcomed. Although this special issue accepts significant insights into best practices and the adaptation of green growth strategies across different regions, it also encourages comparative studies that address achievements, challenges, and lessons learned in various national and regional contexts. Furthermore, it emphasizes that achieving green growth in post-industrial nations poses a political and institutional challenge, in addition to being a technological and economic one. The scope of economic transformation is shaped by public acceptance, private sector participation, government policy, and international cooperation. Therefore, contributions studying innovative governance methods, effective policy development, stakeholder engagement, and the significance of international environmental accords will offer valuable perspectives to enhance the global discussion on green transformation. The complex relationship between economic transformation and the reduction of carbon emissions in post-industrial economies striving for green growth is the primary focus of this special issue. It encourages interdisciplinary research that examines how these economies can effectively decouple economic growth from environmental degradation. Key topics of this special issue include the transition of energy systems, the effectiveness of environmental policies, the industrial market and social implications of low-carbon transformation, and the challenges of globalization and carbon leakage. Contributions that provide empirical evidence, comparative analyses, and innovative modeling approaches to measure and promote sustainable growth are highly encouraged. In the context of escalating climate change issues, this special issue aims to provide scholars and policymakers with a platform to share their sustainable economic achievements with the research community. It welcomes a wide range of scholarly contributions, including theoretical frameworks, empirical research, policy evaluations, and interdisciplinary approaches, all of which enhance understanding of how post-industrial economies can address the challenges of climate change mitigation through economic transformation. By integrating rigorous academic research with real-world scenarios, authors are urged to provide concrete insights that will assist in decision-making toward sustainable development.

We welcome contributions on the following topics and related themes:

• Fiscal and regulatory instruments for decarbonization.
• Industrial economics and decarbonization: Approaches and challenges
• Clean technologies and green innovations: R&D and technology role in reducing carbon emissions.
• Restructuring towards a carbon-free economy: Impacts on national carbon footprints of the transition from manufacturing to services.
• Transition and social equity: Addressing the socioeconomic impacts of the green transformation on communities and workers.
• Measurement and modeling: Green GDP, assessing carbon emissions, and sustainability indicators related to post-industrial economies.
• Comparative evaluations and case studies: Developing a balance between carbon emissions and economic transformation at the national and regional level.
• Economic transformation and implications for green growth
• Role of green industrial policy in green growth
• Green economy transition: Consequences for the service sector
• Cultural and social dimensions of green growth
• Circular economy-green growth nexus in the context of digital industrial transformation
• Energy transition for green economic transformation
• Role of political economy in green industrial transformation
• Green growth objectives in the context of geopolitics
• Problems in the way of structural change and their consequences for green growth
• Role of social factors in economic transformation and green growth

Guest Editors

Dr. Muhammad Tayyab Sohail (Leading Guest Editor)
Associate Professor
School of Public Administration, Xiangtan University, China
https://scholar.google.com/citations?user=vBYCVDwAAAAJ&hl=en
ORICID: 0000-0002-7308-0297
Email: muhammad.s@gust.edu.kw

Dr. Sana Ullah
Assistant Professor
University of Economics and Human Sciences in Warsaw, Warsaw, Poland
ORICID: 0000-0003-3431-9776
Email: s.ullah@vizja.pl
https://scholar.google.com/citations?user=xVt2znIAAAAJ&hl=en

Dr Ramiz ur Rehman
Assistant Professor
Teesside University International Business School,
Teesside University, UK
ORICID: 0000-0002-9619-8060
Email: r.rehman@tees.ac.uk
https://scholar.google.com/citations?user=dQHkVmsAAAAJ&hl=en

Dr. Malik Muhammad Akhtar
Associate Professor
Department of Environmental Science,
Faculty of Life Sciences & Informatics,
Balochistan University of Information Technology, Engineering and
Management Sciences (BUITEMS), Quetta, Pakistan
https://scholar.google.com/citations?user=taiIvjcAAAAJ
ORICID: 0000-0002-2235-1499
Email: muhammad.akhtar@buitms.edu.pk

References

Ajoykumar, K. N. (2025). Understanding Global Energy Politics. The Intersection of Global Energy Politics and Climate Change: A Comprehensive Analysis of Energy Markets and Economics, 1-34.
Al-Masri, R., & Ibrahim, M. (2025). Integrating Green Finance, Economic Complexity, and Renewable Energy for Sustainable Development in Asia. Journal of Energy and Environmental Policy Options, 8(1), 66-74.
Chandel, A., Yadav, M., & Nguyen, P. M. (2025). Climate Change and Sustainable Development: How Can Climate Change Be Addressed Within the Framework of Sustainable Development Goals? In Effects of Climate Change on Social and Economic Factors (pp. 387-422). IGI Global.
Li, J., & Imran, A. (2025). Sustainable Transitions: Navigating Green Technologies, Clean Energy, Economic Growth, and Human Capital for a Greener Future. Sustainability, 17(8), 3446.
Lugo-Morin, D. R. (2025). Anthropocene futures: Regeneration as a decarbonization strategy. Sustainable Social Development. 2025; 3 (1): 3153. Social Development.
Wang, W., Imran, M., Ali, K., & Sattar, A. (2025). Green policies and financial development in G7 economies: An in‐depth analysis of environmental regulations and green economic growth. In Natural resources forum (Vol. 49, No. 2, pp. 1081-1107). Oxford, UK: Blackwell Publishing Ltd.
Ye, C., Yonghe, L., Liang, Z., & s Ciai, P. (2025). Urban shrinkage impedes carbon scale but increases carbon intensity in China.