Creating public value through sustainable initiatives: environmental, economic, and social impacts

This paper explores the role of Energy Communities (ECs) in creating public value by contributing to environmental, economic, and social sustainability. Drawing on the theoretical frameworks of Smart City Governance and Hybrid Organizations, the study positions ECs as key drivers of the Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action). ECs empower communities to become active participants in the energy transition by promoting local renewable energy production and fostering social cohesion. Through a case study of an Italian Energy Community, this research applies the Public Value Scorecard (PVSC) to evaluate the societal impact of ECs across multiple dimensions. The study finds that ECs generate significant public value by reducing energy poverty, enhancing energy autonomy, and improving social inclusion, especially in rural areas. Additionally, ECs promote local economic resilience by creating new economic opportunities and supporting sustainable growth. Despite their potential, ECs face challenges in ensuring financial sustainability, navigating regulatory complexities, and integrating advanced technologies. The study highlights the need for tailored policy interventions to address these barriers and suggests future research directions for refining EC financial models, regulatory frameworks, and governance structures to bridge a key gap in the literature. Lastly, it offers a comprehensive evaluation of how ECs create public value and provides practical insights for policymakers and practitioners seeking to harness the potential of ECs to drive sustainability and community well-being.