Assessing the Impact of Green Innovation and Digitalization on Energy Sector Resilience and Sustainability: A Grey Causal Modelling Approach

ABSTRACT

The rapid advancement of digital technology in previous years has substantially transformed various industries, notably the energy sector, where the modernization of energy systems has redefined energy consumption. Previous literature lacks an exploration of the role of digitalization and green innovation in enhancing energy sustainability and resilience. This research fulfils the gap and investigates the impact of green innovation and digitalization on the sustainability and resilience of the energy sector. This study identified 10 factors of green innovation and digitalization through literature review and experts' opinions for strengthening sustainability and resilience. Grey causal modelling (GCM) was employed in this study to investigate the cause‐and‐effect factors and rank cause‐and‐effect pairs using the experts' insights collected in two phases. Responses are collected to determine the cause‐and‐effect factors in the first phase, followed by the ranking of identified cause‐and‐effect pairs through experts' opinions. The study's findings indicate that green finance is the critical causal component, followed by real‐time monitoring considering both objectives of sustainability and resilience. This study can provide valuable insights for decision‐makers and professionals in the energy sector in fostering a robust and sustainable system.