Are the circular economy initiatives achievable through digitalization, technological advancements, and renewable energy

Abstract

AbstractThe study examines the role of digitalization, technology, and renewable energy on environmental footprint which aims to access the circular economy in Saudi Arabia. We used the quarterly data, from 1998 to 2020, which is simulated by using the Markov chain Monte Carlo method for empirical estimations. The findings have reported the significant and positive coefficients for economic complexity and digital economy. On contrary, the digital infrastructure and technological advancement have provided the significant and negative coefficients. The results of digitalization indicators are diverse, mentioning that digitalization needs to be subcategorized to conclude the appropriate relationship between digitalization and carbon economy. We further report the findings on the basis of Saudi Vision 2030, which are useful for policy suggestions. The outcomes of this study are useful to form the environmental policies based on circular economy. Moreover, the policymakers have to put more efforts in digitalizing the economy, which leads to minimize the environmental damages.