Exploring the Effects of Renewable Energy, Energy Consumption, and Industrial Growth on Saudi Arabia’s Environmental Footprint: An Autoregressive Distributed Lag Analysis

Mwahib Gasmelsied Ahmed Mohammed, Sufian Eltayeb Mohamed Abdel-Gadir (), Faizah Alsulami, Sonia Mannai, Lamia Arfaoui, Khalid Alharbi, Amal Abdulmajeed Qassim and Mahmoud Mokhtar Alsafy
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Mwahib Gasmelsied Ahmed Mohammed: Finance and Investment Department, Faculty of Business Administration, University of Tabuk, Tabuk 71491, Saudi Arabia
Sufian Eltayeb Mohamed Abdel-Gadir: Department of Public Law, College of Law, Sultan Qaboos University, P.O. Box 50, Muscat 123, Oman
Faizah Alsulami: Department of Accounting, Faculty of Business Administration, University of Tabuk, P.O. Box 741, Tabuk 71491, Saudi Arabia
Sonia Mannai: Department of Finance and Investment, Faculty of Business Administration, University of Tabuk, P.O. Box 741, Tabuk 71491, Saudi Arabia
Lamia Arfaoui: Department of Business Administration, Faculty of Business Administration, University of Bisha, P.O. Box 551, Bisha 61922, Saudi Arabia
Khalid Alharbi: Department of Accounting, Faculty of Business Administration, University of Tabuk, P.O. Box 741, Tabuk 71491, Saudi Arabia
Amal Abdulmajeed Qassim: Department of Management, Faculty of Business Administration, University of Tabuk, P.O. Box 47512, Tabuk 966, Saudi Arabia
Mahmoud Mokhtar Alsafy: Department of Mechanical Industrial Engineering, College of Engineering, Sultan Qaboos University, P.O. Box 50, Muscat 123, Oman

Energies, 2024, vol. 17, issue 24, 1-22

Abstract: This study explores the long-run relationship among the environmental footprint (EnF), renewable energy consumption, energy use, industrial growth, and urbanization in Saudi Arabia from 1990 to 2023, employing the Autoregressive Distributed Lag (ARDL) model, alongside Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), and Canonical Cointegrating Regression (CCR) for robustness checks. Results indicate a significant long-term relationship among the variables, with renewable energy adoption emerging as a crucial factor in reducing carbon emissions. The ARDL bounds test confirms the existence of cointegration, revealing the dynamic interplay among renewable energy, economic growth, and environmental sustainability. The findings show that renewable energy consumption significantly reduces the environmental footprint (CO 2 emissions), supporting Saudi Arabia’s Vision 2030 goals for economic diversification and sustainable development. However, industrial expansion, while critical for economic growth, still contributes to increased emissions, underscoring the need for further investment in clean technologies. The study also highlights the role of urbanization, which, while essential for development, poses challenges for environmental sustainability. Short-term dynamics, represented by the Error Correction Model, indicate a fast adjustment speed toward equilibrium, with deviations corrected by approximately 52% each period. The study offers valuable insights for policymakers aiming to balance industrial growth with environmental protection, emphasizing the need for strategic investments in renewable energy and energy efficiency. This research contributes to the understanding of energy–economy–environment interactions in oil-rich economies, providing a foundation for future studies to explore the impact of advanced technologies and policy interventions on sustainable development

Keywords: environmental footprint; co-integration; renewable energy; industrialization; energy (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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