رEnvironmental Sustainability and Welfare in Achieving Competitive Advantage in the Digital Economy: An Applied Study on Iraqi Companies (2019-2025)

Abstract

This study investigates the impact of environmental sustainability on achieving competitive advantage in Iraqi companies (2019–2025), examining the moderating role of digital transformation. Using a Panel OLS-FE model and GMM-System on 30 listed firms, results reveal a significant negative relationship between CO2 emission intensity and Return on Assets (ROA), while digitalization positively moderates this link. Findings show that a 10% reduction in emissions correlates with a 2.1 percentage point increase in ROA at average digital levels. The study recommends integrating tax incentives with digital green performance indicators and mandating electronic sustainability reporting via the XBRL standard to enhance transparency and financial performance.