Digital twin adoption, cost accounting, and sustainability in GCC infrastructure systems

This paper investigates how digital twin (DT) technologies affect environmental cost efficiency and sustainability performance in Gulf Cooperation Council (GCC) infrastructure systems, focusing on the moderating role of sustainability regulation. Using a longitudinal panel dataset from the United Arab Emirates, Saudi Arabia, and Qatar covering 2015–2024, the study employs fixed effects regression, difference-in-differences, and system generalised method of moments estimation. A sustainability regulation score is developed to capture institutional capacity and enforcement intensity shaping the digital–sustainability nexus. Higher levels of DT adoption significantly enhance environmental cost efficiency measured as emissions per unit of infrastructure output – and improve triple-bottom-line performance across environmental, social, and economic dimensions. The moderating role of sustainability regulation is also significant, with stronger frameworks amplifying DT impacts. Country-level analysis identifies the UAE as achieving the most consistent results due to advanced regulatory and digital infrastructures. Policymakers should align sustainability standards with digitalisation strategies, while project developers and technology providers should integrate DT tools early in project lifecycles. The study offers a novel cross-country framework linking digital twin adoption, cost accounting, and regulatory strength to sustainability outcomes in GCC infrastructure.