Empirical Analysis of Non-Renewable Energy, Renewable Energy, Foreign Direct Investment, and Economic Growth on Environmental Sustainability

Omar Al-Kasasbeh (), Nashat Ali Almasria (), Mohannad Almajali (), Tawfiq Taleb Tawfiq (), Aws Al-Okaily () and Hala Tawaha ()
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Omar Al-Kasasbeh: Economics Department, Faculty of Business, Amman Arab University, Jordan
Nashat Ali Almasria: A'Sharqiyah University (ASU), Oman
Mohannad Almajali: Economics Department, Faculty of Business, Amman Arab University, Jordan
Tawfiq Taleb Tawfiq: Charles Albert Reid School of Business, Brescia University, USA,
Aws Al-Okaily: School of Business, Jadara University, Jordan
Hala Tawaha: Department of Economics and Finance, University of New Orleans, USA.

International Journal of Energy Economics and Policy, 2025, vol. 15, issue 3, 515-523

Abstract: The study mainly focuses on checking the dynamic impact of nonrenewable energy, renewable energy, foreign direct investment, and economic growth on environmental sustainability by the newly developed bootstrap autoregressive distributed lag (ARDL) testing technique. ARDL being a dynamic model incorporates the capacity of giving both short and long runs series by the help of the first and second differences of the series. To this effect, the annual data covers a timeframe from the year 2000 up to 2023. On the other hand, Granger's causality analysis indicates that there is a one-way causative relationship between consumption of renewable and non-re renewable energies and environmental sustainability in relation to GDP in the United Arab Emirates. Moreover, the ARDL findings revealed that the coefficients of GDP showed positive values, whereas the quadratic GDP exhibited negative values. These findings support the validity of the EKC theory in the UAE, the negative relationship between FDI and environmental sustainability. Moreover, policymakers in the UAE must dedicate substantial financial resources towards the advancement of sustainable energy sources, while concurrently decreasing dependence on non-renewable fuels.

Keywords: Renewable Energy; Bootstrap ARDL; FDI; Environmental Kuznets Curve; Sustainability; UAE (search for similar items in EconPapers)
Date: 2025
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DOI: 10.32479/ijeep.18575

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