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Investigating the N-Shaped Energy-Environmental Kuznets Curve Hypothesis in Saudi Arabia

Author

Listed:
  • Haider Mahmood

    (Department of Finance, College of Business Administration, Prince Sattam Bin Abdulaziz University, 173 Alkharj 11942, Saudi Arabia,)

  • Muhammad Tanveer

    (Prince Sultan University, Rafha Street, Riyadh 11586, Saudi Arabia,)

  • Maham Furqan

    (Oregon State University, Corvallis, OR 97331, United States.)

Abstract

The Environmental Kuznets Curve (EKC) is extensively investigated in the literature, but testing of energy-EKC is scarce in the literature. The testing of energy-EKC is very important for extensive nonrenewable energy users. This research investigated the energy and growth cubic relationship in Saudi Arabia to verify the N-shaped energy EKC from 1970-2019. The estimated long-run parameters of linear, quadratic, and cubic terms of economic growth are found positive, negative, and positive, respectively. Hence, energy-EKC is corroborated in Saudi Arabia in the long run with the first turning point of N-curve at Gross Domestic Product (GDP) per capita of 19277 constant US dollar and the second point at 30880. Hence, the increasing GDP per capita before 19277 and after 30880 would increase energy use and have environmental consequences. The increasing GDP per capita between 19277 and 30880 would decrease energy consumption and is pleasant for the environment. The same behavior of energy usage is found in the short run. Hence, the energy-EKC is also validated in the short run.

Suggested Citation

  • Haider Mahmood & Muhammad Tanveer & Maham Furqan, 2021. "Investigating the N-Shaped Energy-Environmental Kuznets Curve Hypothesis in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 499-503.
    • Handle: RePEc:eco:journ2:2021-05-56
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    References listed on IDEAS

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    More about this item

    Keywords

    The energy EKC; energy consumption; economic growth; cointegration;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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