Chapter 11 Digitalization, efficiency and convergence
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This chapter discusses the role played by digitalization in sector convergence. It puts converge of infrastructure sectors into the context of their liberalization and argues that ensuing technological developments at the interfaces of the sectors initially triggered sector convergence. While digitalization permeates all infrastructure sectors, only certain effects of digitalization pertaining to efficiency actually further sector convergence. Still, we argue that the role played by digitalization in fostering sector convergence is rather a facilitating one. The main driver of convergence is broader policy changes, particularly overarching decarbonization policies. The chapter concludes with a discussion about smart cities, which are considered to be the ultimate example of efficiency-driven sector convergence.

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