The Effect of Digitalization on Energy Demand in Low-Carbon Scenarios: A Case Study of Saudi Arabia

The study examines the literature regarding how digitalization influences decarbonization, specifically in the context of smart city investments. It emphasizes the potential of smart cities to foster sustainable and low-carbon living environments. The research identifies seven key digitalization technologies, including the Internet of Things, artificial intelligence, advanced analytics, digital economy and robotics, e-platforms, cybersecurity, and blockchain, as tools to enhance decarbonization efforts. Using a deductive approach, data is collected through interviews with engineers from the NEOM project in Saudi Arabia and directors of enterprises operating in Saudi Arabia. Statistical analyses, such as regression and correlation matrices, are employed to analyze the data, resulting in the establishment of a reliable and significant model using the ANOVA test, which demonstrates the impact of digitalization on decarbonization. The study finds that predictors, especially the digital economy and blockchain, positively influence decarbonization, although blockchain shows a lower level of significance compared to the digital economy.