Empirical assessment of digital transformation and renewable energy adoption in the Middle East

It is necessary to ensure the thorough transition of energy dependency from fossil fuels to renewable energy as it is the sustainable source of energy. In this view, the study aims to explore the impact of digital transformation (DTR) on renewable energy adoption (REA). The analysis was set on the dataset of middle east countries over the span of 1999–2023. For checking the relationship, the study mainly considers the CS-ARDL model and proceeds with FMOLS model for robustness analysis. The findings infer that DTR positively influence the REA. This can be explained as DTR ensures the smooth flow of energy, internet of things, and better management of energy production and consumption. All these factors pave the way towards the transition of renewable energy. In addition, the analysis discloses the positive effect of FDI inflow, government effectiveness, and economic growth whilst urbanization negatively influence the REA. This research is novel because it thoroughly examines how institutional technological and economic factors influence REA in the Middle East, an area where there are currently few studies of this kind. The study’s conclusions give decision-makers doable plans to boost the regions sustainable development objectives and hasten the adoption of renewable energy.