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The Dynamics of Industrial Resilience for Long‐Term Sustainability: Impacts of Economic Disruptions, Energy Efficiency, and Network Interactions

Author

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  • Adnan Khurshid
  • Khalid Khan
  • Abdur Rauf
  • Javier Cifuentes‐Faura

Abstract

Resilience is the capacity to adapt and thrive in uncertainty and risk, essential for long‐term sustainability. Energy efficiency and industrial connectedness, among other policies, significantly enhance resilience by reducing dependence on traditional energy sources, mitigating supply disruptions, and minimizing price volatility. This study examines the relationship in the global context. Similarly, considers the cases of five key economies, China, the US, Japan, India, and Spain, during 1995–2023 by using a novel model based on the Lotka‐Volterra approach. The findings show that energy efficiency improves industrial resilience; nevertheless, the effect is diminishing (Phase 1–8) due to rising energy demands. The outcomes are consistent in country‐specific cases. However, strong industrial network growth and economic efficiency boost industrial resilience. The US and China had the strongest interaction strength (network), which is critical for resilience. Japan and India followed them; however, Spain had weaker interactions. Global industrial resilience shifted from higher (H) to lower (L) levels during the study period due to diverse global uncertainties. Nevertheless, countries with more robust industrial linkages remained resilient in those conditions. These variations can be attributed to differences in network structure and efficiency. Therefore, the study emphasizes that resilience needs cooperative, dynamic frameworks suited to national industrial strengths, as well as a focus on energy efficiency and interaction strength to create systems that are robust to global disturbances.

Suggested Citation

  • Adnan Khurshid & Khalid Khan & Abdur Rauf & Javier Cifuentes‐Faura, 2025. "The Dynamics of Industrial Resilience for Long‐Term Sustainability: Impacts of Economic Disruptions, Energy Efficiency, and Network Interactions," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(S1), pages 594-614, November.
  • Handle: RePEc:wly:sustdv:v:33:y:2025:i:s1:p:594-614
    DOI: 10.1002/sd.70018
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