Exploring Saudi Arabia’s 2060 net zero-emission paths via fractional frequency Fourier procedures. The imperatives of resource efficiency, energy efficiency, and digitalization

Abstract

ABSTRACT By applying the novel fractional frequency Fourier ARDL technique, we unraveled the intricacies underpinning resource efficiency, energy efficiency, digitalization, and environmental sustainability in Saudi Arabia. Compelled by the conflicting narratives of prior investigations and the need for updated insights, the analyzed time series spanning 1990–2022 periods divulged interesting insights amenable to policy optimization. First, the fractional frequency Fourier ADL cointegration procedure reveals a long-term association among all the enlisted series. Second, resource and energy efficiencies, as well as digitalization, improved environmental quality by limiting carbon intensities and ecological footprint with some heterogeneous attributes across the timeframes. Notably, while resource efficiency is more effective toward ecological footprint mitigations, energy efficiency proves more efficient for carbon intensity reductions. Lastly, the fractional frequency Fourier Toda-Yamamoto causality test affirms the predictive attributes of the enlisted series on environmental performance. Hence, these factors are critical to KSA’s environmental sustainability paths. Based on these empirical discoveries, policymakers in KSA must pay adequate attention to the efficient utilization of resources and energy to complement other steps toward realizing Saudi Arabia’s 2060 net zero-emission. Likewise, policymakers must ensure the efficient allocation of income to environmentally sensitive ventures to curtail its negative repercussions on the environment. Other relevant steps to curtail carbon intensities and ecological footprint for optimal environmental performance in KSA have been highlighted.