THE ECONOMIC COST OF THE DIGITAL CARBON FOOTPRINT: EVALUATING THE ENVIRONMENTAL SUSTAINABILITY OF THE DIGITAL ECONOMY

Abstract

 The rapid expansion of digital infrastructure has fundamentally reshaped the global economy, yet its environmental consequences remain insufficiently priced and incompletely understood. This scientific article investigates the economic cost of the digital carbon footprint, examining the greenhouse gas emissions generated by data centers, network infrastructure, consumer devices, blockchain operations, and artificial intelligence workloads. Drawing on energy consumption data, social cost of carbon estimates, and regional regulatory frameworks, we develop a structured economic valuation of ICT-sector emissions and analyze the conditions under which markets fail to internalize these costs. We find that the true economic burden of digital emissions — accounting for externalities, stranded asset risks, and transition costs — substantially exceeds current market prices. Additionally, it also further evaluates the cost-effectiveness of emerging policy instruments and argues that a credible green digital transition requires both regulatory coherence and targeted investment incentives. Our analysis contributes to the broader literature on environmental economics by providing sector-specific cost estimates and a comparative policy assessment applicable to both developed and emerging digital economies.