Towards Green and Eco-Efficient Regulatory Sandboxes: Challenges and Prospe

Abstract

The gradual virtualization of society, driven by rapid digitalization, creates the misconception that digital processes reduce environmental pollution. In reality, the environmental impact of developing and deploying digital innovations often exceeds that of traditional industrial production. At the same time, states are increasingly promoting technological innovation through experimental legal regimes, such as regulatory sandboxes. A review of international experiences shows that “green” sandboxes are being established in several jurisdictions; however, little attention has been given to designing environmentally efficient sandbox frameworks. This article introduces the concept of environmental effectiveness in experimental legal regimes for digital innovation. It examines green sandbox initiatives in Austria, Vietnam, the USA, and Canada, and develops criteria for evaluating eco-efficiency in legal experimentation. The research applies case analysis, comparative legal methods, a systemic approach, and legal modeling to design a scalable framework for eco-efficient sandboxes. The proposed model embeds circular economy principles–such as resource efficiency, lifecycle thinking, and sustainability-into regulatory innovation. By integrating environmental and legal performance criteria, this approach offers policymakers and regulators a practical tool for fostering sustainable technological development.