The Impact of Energy Innovations and Environmental Performance on the Sustainable Development of the EU Countries in a Globalized Digital Economy

The research conducted in this paper aims to examine the role of energy innovations, digital technological transformation, and environmental performance enhancing sustainable economic development European Union (EU) countries, widely shaped by globalization process. An advanced empirical analysis is configured on a cross-sectional dataset EU-27 Member States compiled at level 2018 based several modern econometric procedures, namely robust regression, structural equation modelling (SEM) network through Gaussian graphical models (GGM). We apply procedures firstly identify assess direct, indirect, total interlinkages between all considered variables, as well their further cumulated spillover impact development. EU countries are afterward clustered according Ward method inset hierarchical clustering for an in-depth assessment tailored policy design accounting financial trade (captured KOF Index Globalization), sustainability Environmental Performance Index—EPI), degree integration technologies (proxied Digital Economy Society Index—DESI). Main results highlight that there significant beneficial effects induced increased transformation with notable differentiation among them. Policy guidelines strategic directions also enhanced largely presented within paper.