Digitizing energy supply chains for enhanced resilience: Exploring the nexus between supply chain digitization, carbon neutrality, and natural resource extraction

Zhenjing Gu, Saeed Mousa, Da Meng, Ahmed M. Elkady and Lin Woon Leong

Energy Economics, 2025, vol. 142, issue C

Abstract: In this era of rapid change, natural resource extraction (NRE) plays a pivotal role in securing an energy-resilient future and fostering sustainable socio-economic development. Carbon neutrality and supply chain digitization have emerged as key strategies in the global battle against susutaining climate. This research explores how supply chain digitization contributes to energy resilience, specifically examining the nexus between carbon neutrality and natural resource extraction in South Asia. Through panel data analysis (employing both random and fixed effect models), the study assesses the impact of supply chain digitization on energy security, sustainable development, and green innovation. The findings indicate that for every 1 % increase in the trade balance of GDP, NRE rises by an average of 0.06 % of gross domestic product (GDP). Additionally, the research reveals that a 1 % reduction in carbon emissions leads to a significant boost in NRE, with an average increase of 1.01 % of GDP, highlighting its substantial contribution to economic growth. Moreover, the study forecasts carbon emissions based on the selected variables using a Feed-forward Neural Network (FFNN), achieving high levels of accuracy with respect to Root Mean Square Error (RMSE) i.e. 21 %. In conclusion, the study emphasizes that supply chain digitization and carbon neutrality are integral to fostering resilient NRE. These insights can guide policymakers in internalizing environmental costs, promoting sustainable practices, improving industrial production by minimizing the polluting elements and investing in conservation initiatives. By recognizing the importance of natural resources, energy resilience, and their economic returns, South Asian economies can make informed decisions that drive long-term resilience and prosperity.

Keywords: Natural resource extraction; Supply chain digitization; Carbon neutrality; Energy resilience; Renewable sources of energy consumption; Resource curse paradox (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:142:y:2025:i:c:s0140988324008867

DOI: 10.1016/j.eneco.2024.108177

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