Investigating the Impact of Energy Consumption and Economic Activities on CO 2 Emissions from Transport in Saudi Arabia

Abdullah Al Shammre ()
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Abdullah Al Shammre: Economics Department, College of Business Administration, King Faisal University, Al-Ahsa 31982, Saudi Arabia

Energies, 2024, vol. 17, issue 17, 1-12

Abstract: This study examines the relationships between CO 2 emissions, gross domestic product (GDP), financial development, energy export, sustainable power, unsustainable power depletion, and commercial growth in the Kingdom of Saudi Arabia (KSA) from 1990 to 2022 by using the auto-regressive distributed lag (ARDL) approach and the vector error correction model (VECM) approach. In the first step, we have used tests such as the augmented Dickey–Fuller (ADF) test and the Dickey–Fuller generalized least squares (DF-GLS) to capture the order of integration of the variables, and the results show that all the variables are stationary in regard to the first difference. In the second step, we have applied the examination of bounds in order to validate the presence of long-term cointegration relationships between the variables. The results of the ARDL approach show that financial development, sustainable energy, and commercial openness have a negative impact on CO 2 emissions. However, GDP, energy export, and unsustainable energy lead to an increase in environmental degradation. Finally, the Granger causality test shows mixed causality relationship among the variables. Accordingly, governments should encourage the development and use of sustainable energy alternatives, such as solar power, wind power, and hydroelectric power, through incentives and subsidies, in addition to conducting new research concerning the topic and starting new initiatives. Protecting and expanding green areas is crucial to mitigate CO 2 emissions, and strategies for transitioning to cleaner energy alternatives should be developed. Additionally, facilitating the transfer of sustainable energy technologies and promoting collaboration in research and development can accelerate the adoption of clean energy solutions. These policy actions can contribute to reducing CO 2 levels, as well as promoting sustainable energy practices in the country.

Keywords: Saudi Arabia; renewable energy; non-renewable energy; CO 2 emissions; 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: 2024
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