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Digitalization and growth are linked to higher greenhouse gases in Saudi Arabia

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Research area:Economics, Econometrics and FinanceEconomics and EconometricsEnvironmental Sustainability in Business

What the study found

Supply chain digitalization and economic growth were associated with higher greenhouse gas emissions in Saudi Arabia, while green innovation and financial globalization were associated with lower emissions in some parts of the analysis.

Why the authors say this matters

The authors say assessing environmental quality is essential and note that there has been limited research on how different dimensions of supply chain digitalization affect the environment. They conclude that their findings support policy recommendations for Saudi Arabia.

What the researchers tested

The researchers examined the impact of supply chain digitalization (the use of digital tools in supply-chain activities), green innovation, financial globalization, and economic growth on greenhouse gases in Saudi Arabia from 2000Q1 to 2022Q4. They used an autoregressive distributed lag model, a frequency domain causality approach, and multiple quantile-on-quantile analysis.

What worked and what didn't

In the short run, the autoregressive distributed lag results showed that supply chain digitalization and GDP increased greenhouse gases, while green innovation and financial globalization reduced them. In the long run, supply chain digitalization and GDP drove greenhouse gases, while green innovation reduced them.

What to keep in mind

The abstract does not give details on the specific policy recommendations. It also does not describe limitations beyond the study period, country focus, and methods used.

Key points

  • Supply chain digitalization and GDP were linked to higher greenhouse gas emissions in the study.
  • Green innovation was linked to lower greenhouse gas emissions in the short run and long run in the ARDL analysis.
  • Financial globalization reduced greenhouse gases in the short run and was linked to greenhouse gases in the long-term causality test.
  • The frequency domain causality test found long-term causality from supply chain digitalization and financial globalization to greenhouse gases.
  • The quantile-on-quantile analysis found negative combined effects at lower quantiles but positive effects at middle and higher quantiles.

Disclosure

Research title:
Digitalization and growth are linked to higher greenhouse gases in Saudi Arabia
Authors:
Mohamed Abu Khazam, Amir Khadem, Ahmad Alzubi
Institutions:
University of Mediterranean Karpasia
Publication date:
2026-03-05
OpenAlex record:
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AI provenance: This post was generated by OpenAI. The original authors did not write or review this post.