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DIGITAL WORKFORCE EXPANSION AND ITS ASSOCIATION WITH ENERGY INTENSITY REDUCTION ACCROSS EUROPE
Abstract
This paper investigates the relationship between technological advancement and sustainability, specifically examining whether countries with larger digital workforces and higher income levels use energy more efficiently. Drawing on annual data from 27 European countries between 2013 and 2023, we analyze three key indicators: the number of employed ICT specialists ([isoc_sks_itspt]), real GDP per capita in chain-linked 2020 euros ([sdg_08_10]), and energy intensity of GDP in chain-linked 2015 volumes ([nrg_ind_ei]). We first characterize each series via descriptive statistics and Pearson correlations. Then, using first-difference OLS on EU panel data, we find that an annual increase in the share of ICT specialists and GDP per capita significantly reduces energy intensity by 0.034 and 3 points, respectively (p less than .001). These short-term effects illustrate the potential of expanding the digital labour force and income growth as flexible levers to accelerate energy efficiency. Policy instruments such as subsidies for digital training, tax incentives for automation and real-time financing linked to energy performance as used in the European Digital Innovation Hubs are well positioned to capitalise on these gains. While our aggregate approach limits causal depth and sectoral insight, future research at the sector level or with dynamic panel methods can refine these results. Our findings suggest that digital upskilling is not only a long-term benefit, but also an immediate, measurable driver of sustainable economic change.
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