Identifying digitalization’s impact on how energy sector companies perform environmentally and financially

Authors

DOI:

https://doi.org/10.15587/1729-4061.2026.364001

Keywords:

carbon intensity, digitalization, fixed effects, energy logistics, the Republic of Kazakhstan

Abstract

The object of the study is energy sector companies in the Republic of Kazakhstan involved in the extraction, transportation, generation, transmission, and distribution of energy resources. The problem addressed is the insufficient understanding of the mechanism through which digitalization affects financial performance, since it remains unclear whether this effect is direct or transmitted through environmental performance indicators.

The empirical basis of the study is a balanced quarterly panel dataset for 2015–2025, comprising 220 observations across five companies. Fixed-effects models, a dynamic lagged model, panel vector autoregressive models, and impulse response functions were used in the study.

The results show that digitalization has a statistically significant negative effect on carbon intensity in the fixed-effects model (β = −0.2828; p < 0.01), whereas its direct effect on return on assets is not statistically confirmed (β = −0.0035; p > 0.10). Carbon intensity has a significant negative effect on financial performance in both the static fixed-effects model (β = −0.0118; p < 0.01) and the dynamic lagged model (β = −0.00213; p < 0.05). These findings provide indirect empirical support for a possible environmental transmission channel, in which digitalization is associated with a lower environmental burden that may subsequently contribute to financial performance.

The study uses quarterly corporate data, a text-based digitalization indicator, and carbon intensity as a measure of environmental performance, allowing an indirect assessment of a possible environmental transmission mechanism.

The results can be used by energy companies, regulators, and investors when developing digital transformation and decarbonization strategies and making ESG-related investment decisions

Author Biographies

Zhaxat Kenzhin, Kazakh National University of Sports

PhD Doctor, Professor

Department of Management and Innovation in Sports

Ali Sabyrzhan, Academy of Public Administration under the President of the Republic of Kazakhstan

Candidate of Economic Sciences, Professor

Institute of Management

Dinara Mussabalina, Abai Kazakh National Pedagogical University; META University

Department of Economic Specialties

Abai Kazakh National Pedagogical University

School of Creative Economy and Law

Kenzhessulu Kuptleuova, West Kazakhstan Agrarian and Technical University named after Zhangir khan

Senior Lecturer

Polytechnic Institute

Natalya Lelesh, West Kazakhstan Agrarian and Technical University named after Zhangir khan

Master of Electrical Engineering, Senior Lecturer

Polytechnic Institute

Aizhan Nurbaeva, L. N. Gumilyov Eurasian National University

PhD Student

Department of Management

Andrey Shunko, Kazakh National University of Sports

PhD Doctor, Senior Lecturer

Department of Sports Education and Coaching

Akmaral Zhakypova, Aktobe Regional University named after K.Zhubanov

PhD Doctor, Senior Lecturer

Department of Geography and Tourism

Arman Maralov, L. N. Gumilyov Eurasian National University

PhD

Department of Management

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Identifying digitalization’s impact on how energy sector companies perform environmentally and financially

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Published

2026-06-29

How to Cite

Kenzhin, Z., Sabyrzhan, A., Mussabalina, D., Kuptleuova, K., Lelesh, N., Nurbaeva, A., Shunko, A., Zhakypova, A., & Maralov, A. (2026). Identifying digitalization’s impact on how energy sector companies perform environmentally and financially. Eastern-European Journal of Enterprise Technologies, 3(13 (141), 34–45. https://doi.org/10.15587/1729-4061.2026.364001

Issue

Vol. 3 No. 13 (141) (2026): Transfer of technologies: industry, energy, nanotechnology

Section

Transfer of technologies: industry, energy, nanotechnology

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Copyright (c) 2026 Zhaxat Kenzhin, Ali Sabyrzhan, Dinara Mussabalina, Aizhan Nurbaeva, Kenzhessulu Kuptleuova, Natalya Lelesh, Andrey Shunko, Akmaral Zhakypova, Arman Maralov

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