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Green Energy, Economic Growth and Environmental Quality Nexus in Saudi Arabia

Author

Listed:
  • Montassar Kahia

    (Department of Economics and Finance, College of Business and Economics, Qassim University, P.O. Box 6640, Buraidah 51452, Qassim, Saudi Arabia)

  • Anis Omri

    (Department of Business Administration, College of Business and Economics, Qassim University, P.O. Box 6640, Buraidah 51452, Qassim, Saudi Arabia)

  • Bilel Jarraya

    (Department of Accounting, College of Business and Economics, Qassim University, P.O. Box 6640, Buraidah 51452, Qassim, Saudi Arabia)

Abstract

This article extends the previous studies on environmental economics literature by examining a possible relationship between economic growth, green energy, and environmental quality. Specifically, this article investigated the three-way linkage between economic growth, renewable energy, and environmental quality in the case of Saudi Arabia using the simultaneous equation modeling approach over the period of 1990–2016. The following are the main findings obtained: (i) a unidirectional causal impact of economic growth on renewable energy consumption was found, confirming the conservation hypothesis; (ii) bidirectional relationships between economic growth and CO 2 emissions and between CO 2 emissions and renewable energy consumption were also found; (iii) the failure of renewable energy in Saudi Arabia to close the gap between growing the economy and protecting the environment in Saudi Arabia; (iv) the environmental Kuznets curve (EKC) hypothesis was supported. Policy implications are also discussed.

Suggested Citation

  • Montassar Kahia & Anis Omri & Bilel Jarraya, 2021. "Green Energy, Economic Growth and Environmental Quality Nexus in Saudi Arabia," Sustainability, MDPI, vol. 13(3), pages 1-13, January.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:3:p:1264-:d:486965
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