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How Does Renewable Energy Consumption Affect Environmental Quality in Saudi Arabia? Evidence from Quantile Regressions

Author

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  • Mehdi Abid

    (Department of Finance and Investment, Al Jouf University, Saudi Arabia.)

Abstract

This paper explores the relationship between renewable energy consumption, non-renewable energy, economic growth and urbanization on CO2 emissions of Saudi Arabia during 1990 2019 period. Using the OLS method and the quantile approach developed by Powell (2022), the results prove that the consumption of renewable energy significantly reduces the level of CO2 emissions; moreover, its impact increases with higher quantiles. On the other hand, non-renewable energy consumption increases CO2 emissions, while its effect decreases with higher quantiles. The empirical results also confirm the validity of the EKC hypothesis for the case of Saudi Arabia. Policymakers should implement policies and regulations to promote the adoption and use of renewable energy to improve environmental quality.

Suggested Citation

  • Mehdi Abid, 2023. "How Does Renewable Energy Consumption Affect Environmental Quality in Saudi Arabia? Evidence from Quantile Regressions," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 574-578, July.
    • Handle: RePEc:eco:journ2:2023-04-58
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    References listed on IDEAS

    as
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    2. Tomiwa Sunday Adebayo & Demet Beton Kalmaz, 2020. "Ongoing Debate Between Foreign Aid and Economic Growth in Nigeria: A Wavelet Analysis," Social Science Quarterly, Southwestern Social Science Association, vol. 101(5), pages 2032-2051, September.
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    More about this item

    Keywords

    EKC Hypothesis; Renewable Energy; Non-renewable Energy; Saudi Arabia; Quantile Regression;
    All these keywords.

    JEL classification:

    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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