Do Oil Price, Renewable Energy, and Financial Development Matter for Environmental Quality in Oman? Novel Insights from Augmented ARDL Approach

Ahmed Samour, Omar Ikbal Tawfik, Magdalena Radulescu () and Cristina Florentina Baldan
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Ahmed Samour: Accounting Department, Dhofar University, Salalah 211, Oman
Omar Ikbal Tawfik: Accounting Department, Dhofar University, Salalah 211, Oman
Magdalena Radulescu: Department of Finance, Accounting and Economics, University of Pitesti, 110040 Pitesti, Romania
Cristina Florentina Baldan: Department of Finance, Accounting and Economics, University of Pitesti, 110040 Pitesti, Romania

Energies, 2023, vol. 16, issue 12, 1-14

Abstract: As an oil-exporting country, Oman traditionally relies on oil sources to meet its energy demand. The country has not been able to safeguard its environment from carbon emissions (CO 2 )-related adversities. In this context, this study evaluated the impacts of the price of oil, financial development, economic growth, and nonrenewable energy on the environmental quality in Oman. The research used the recently developed augmented autoregressive distributed lag (ARDL) approach to investigate annual data from 1980 to 2018. The outcomes revealed the following: (i) financial development negatively affected ecological quality in the short and long term; (ii) oil prices positively impact carbon emissions in the long term; however, the price of oil does not significantly influence CO 2 emissions in the short term; (iii) nonrenewable energy is harmful for ecological quality over both the short and long term; (iv) there is a causal link among financial development, nonrenewable energy, and carbon emissions. The current research outcomes present valuable findings for Oman’s policymakers in heading toward sustainable financial and energy sectors.

Keywords: Oman; financial sector development; environmental degradation; Bayer and Hanck; bootstrap ARDL (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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