ENERGY VULNERABILITY, DIGITAL TRANSFORMATION AND SUSTAINABLE ECONOMIC DEVELOPMENT IN ASIA AND THE PACIFIC: THE MODERATING ROLE OF GREEN TECHNOLOGICAL INNOVATION AND INSTITUTIONAL QUALITY

Abstract

This study examines the relationship between energy vulnerability, digital transformation, and sustainable economic development in Asia and the Pacific, with particular attention to the moderating roles of green technological innovation and institutional quality. Using illustrative panel data and country and year fixed-effects models, the study finds that energy vulnerability has a significant negative effect on sustainable economic development, while digital transformation has a significant positive effect. The results further indicate that green technological innovation weakens the adverse effect of energy vulnerability and strengthens the sustainability benefits of digital transformation. Institutional quality also mitigates the negative effect of energy vulnerability and enhances the contribution of digital transformation to sustainable development.The findings suggest that energy diversification, digital transformation, green technological innovation, and stronger institutions are complementary pathways for promoting sustainable economic development in the Asia-Pacific region. The study highlights the importance of combining energy-transition policies with digital and technological innovation and effective institutional governance.