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Urbanization, Oil Price and Pollution in Saudi Arabia

Author

Listed:
  • Haider Mahmood

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

  • Tarek Tawfik Yousef Alkhateeb

    (College of Business Administration, Prince Sattam Bin Abdulaziz University, Alkharj, Saudi Arabia,)

  • Maleeha Mohammed Zaaf Al-Qahtani

    (College of Education, Prince Sattam Bin Abdulaziz University, Al-Dilam 16213, Saudi Arabia,)

  • Zafrul Allam

    (College of Business Administration, Prince Sattam Bin Abdulaziz University, Alkharj, Saudi Arabia,)

  • Nawaz Ahmad

    (University of Lahore, Lahore 54590, Pakistan,)

  • Maham Furqan

    (S&P Global Market Intelligence, Islamabad 44000, Pakistan.)

Abstract

Urbanization and income are usually supported by oil prices and revenues in the oil abundant countries. But, the environmental effect of urbanization and oil prices should not be ignored to ensure the sustainable growth of oil abundant economies. We investigate the role of urbanization and oil prices on the CO2 emissions per capita of Saudi Arabia using a period 1980-2014 and cointegration test. Urbanization has positive on the CO2 emissions per capita. So, a rapid and continues increasing urbanization throughout the sample period is found responsible for degrading the environment. Moreover, the oil price is also found responsible for increasing CO2 emissions in the long run but its effects are found insignificant in the short run. We recommend the Saudi economy to diversify from the oil sector to ensure clean environment.

Suggested Citation

  • Haider Mahmood & Tarek Tawfik Yousef Alkhateeb & Maleeha Mohammed Zaaf Al-Qahtani & Zafrul Allam & Nawaz Ahmad & Maham Furqan, 2020. "Urbanization, Oil Price and Pollution in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 477-482.
    • Handle: RePEc:eco:journ2:2020-02-55
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    References listed on IDEAS

    as
    1. Nabil Maalel & Haider Mahmood, 2018. "Oil-Abundance and Macroeconomic Performance in the GCC Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(2), pages 182-187.
    2. Haider Mahmood & Abdullatif Sulaiman Alrasheed & Maham Furqan, 2018. "Financial Market Development and Pollution Nexus in Saudi Arabia: Asymmetrical Analysis," Energies, MDPI, vol. 11(12), pages 1-15, December.
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    5. Al-Mulali, Usama & Ozturk, Ilhan, 2015. "The effect of energy consumption, urbanization, trade openness, industrial output, and the political stability on the environmental degradation in the MENA (Middle East and North African) region," Energy, Elsevier, vol. 84(C), pages 382-389.
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    8. Haider Mahmood & Ahmad M.A. Zamil, 2019. "Oil Price and Slumps Effects on Personal Consumption in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 12-15.
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    11. Ahmad M. A. Zamil & Maham Furqan & Haider Mahmood, 2019. "Trade openness and CO2 emissions nexus in Oman," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(2), pages 1319-1329, December.
    12. Haider Mahmood & Tarek Tawfik Yousef Alkhateeb, 2017. "Trade and Environment Nexus in Saudi Arabia: An Environmental Kuznets Curve Hypothesis," International Journal of Energy Economics and Policy, Econjournals, vol. 7(5), pages 291-295.
    13. Haider Mahmood & Tarek Tawfik Yousef Alkhateeb, 2018. "Foreign Direct Investment, Domestic Investment and Oil Price Nexus in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 8(4), pages 147-151.
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    More about this item

    Keywords

    CO 2 emissions; Oil prices; Urbanization; Cointegration;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts

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