Evaluating Digital Sustainability in Europe: Economic, Social, and Environmental Dimensions

This study examines the intersection between digitization and sustainability using the concept of digital sustainability as a theoretical lens, which emphasizes the need for responsible and sustainable use of digital technologies to contribute to the achievement of holistic sustainable development that can embrace within the economic, societal, and environmental dimensions. Despite the growing interest in digital sustainability, existing analyses in the literature are still fragmented and lack an all-encompassing view capable of exploring the multiple effects resulting from digital transformation from economic, social, and environmental perspectives. Therefore, this study aims to fill this research gap by examining the complex relationships between digital technologies and sustainability to understand the impact of digital transformation on the three dimensions aimed at achieving a more sustainable future for European countries. To meet this objective, the study proposes a composite index, the Digital Development Index (DDI), which can assess the three dimensions of digital sustainable development across the European Union. Specifically, based on 227 indicators from the Eurostat database, the DDI index reveals different degrees of digital development in the European context for the economic, societal, and environmental dimensions, showing advanced digital development in Western and Northern Europe and instead persistent disparities in Southern, Central, and Eastern European countries. Our study contributes to the state-of-the-art regarding digital sustainability by introducing a new composite index that quantifies the triple perspective of digital sustainability in the European context, shedding light on established trends and dynamics. In particular, the study provides managers and policymakers with an understanding of the areas of greatest gap, strategic actions to be implemented and priorities to be followed to be guided by the best practices of some benchmark countries in digital sustainable development.