EIB Working Paper 2024/04 - The impact of the digital and green transitions on investment inefficiency

Firms do not always invest at the optimal and most efficient level. This study examines whether investing in green and digital technologies tends to make the level of firms' investments more efficient or inefficient. Using data from the European Investment Survey (EIBIS), matched with data from ORBI...

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Հրապարակվել է: European Investment Bank 2025
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Առցանց հասանելիություն:ONIX_20250402_9789286158247_17
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collection Directory of Open Access Books
description Firms do not always invest at the optimal and most efficient level. This study examines whether investing in green and digital technologies tends to make the level of firms' investments more efficient or inefficient. Using data from the European Investment Survey (EIBIS), matched with data from ORBIS, and covering nearly 5000 observations from 27 European countries over the period 2021-2023, the study employed a panel data regression model to estimate the effect of green and digital investments. The analysis shows that both types of investments reduce investment inefficiency, particularly for under-investing firms. Results also suggest that digital technologies can enhance the efficiency gains from green investments. These results have important implications for policy makers and business managers who aim to foster the twin digital and green transitions in Europe and improve investment efficiency and competitiveness.
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publisherStr European Investment Bank
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spelling doab-20.500.12854ir-1581012025-07-30T09:00:09Z EIB Working Paper 2024/04 - The impact of the digital and green transitions on investment inefficiency thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting Firms do not always invest at the optimal and most efficient level. This study examines whether investing in green and digital technologies tends to make the level of firms' investments more efficient or inefficient. Using data from the European Investment Survey (EIBIS), matched with data from ORBIS, and covering nearly 5000 observations from 27 European countries over the period 2021-2023, the study employed a panel data regression model to estimate the effect of green and digital investments. The analysis shows that both types of investments reduce investment inefficiency, particularly for under-investing firms. Results also suggest that digital technologies can enhance the efficiency gains from green investments. These results have important implications for policy makers and business managers who aim to foster the twin digital and green transitions in Europe and improve investment efficiency and competitiveness. 2025-04-03T11:23:52Z 2025-04-03T11:23:52Z 2025-04-02T13:56:12Z 2024 book ONIX_20250402_9789286158247_17 https://library.oapen.org/handle/20.500.12657/100560 9789286158247 https://directory.doabooks.org/handle/20.500.12854/158101 eng open access image/jpeg n/a https://library.oapen.org/bitstream/20.500.12657/100560/1/9789286158247_pdf.pdf European Investment Bank 10.2867/1050208 10.2867/1050208 feca012f-a3d8-4aac-95aa-b6cf4bdbed7c 9789286158247 30 Luxembourg open access
spellingShingle thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting
EIB Working Paper 2024/04 - The impact of the digital and green transitions on investment inefficiency
title EIB Working Paper 2024/04 - The impact of the digital and green transitions on investment inefficiency
title_full EIB Working Paper 2024/04 - The impact of the digital and green transitions on investment inefficiency
title_fullStr EIB Working Paper 2024/04 - The impact of the digital and green transitions on investment inefficiency
title_full_unstemmed EIB Working Paper 2024/04 - The impact of the digital and green transitions on investment inefficiency
title_short EIB Working Paper 2024/04 - The impact of the digital and green transitions on investment inefficiency
title_sort eib working paper 2024 04 the impact of the digital and green transitions on investment inefficiency
topic thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting
topic_facet thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting
url ONIX_20250402_9789286158247_17