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Does Financial Development Really Improve Environmental Quality in Al-Jouf Region? Empirical Contribution to the Environmental Politics

Author

Listed:
  • Zouheyr Gheraia

    (Department of Business Management, College of Business, Jouf University, Skaka, Saudi Arabia,)

  • Sawssan Saadaoui

    (Department of Business Management, College of Business, Jouf University, Skaka, Saudi Arabia,)

  • Hanane Abdelli

    (Department of Business Management, College of Business, Jouf University, Skaka, Saudi Arabia,)

  • Naeimah Fahad S. Almawishir

    (Department of Business Management, College of Business, Jouf University, Skaka, Saudi Arabia,)

  • Naif Nadi Abaalkaif

    (Executive Master of Business Administration (EMBA) College of Business, Jouf University, Saudi Arabia.)

Abstract

This study examines the dynamic impact of financial development, trade openness, and economic growth on carbon dioxide (CO ) emissions in Saudi Arabia. We applied the autoregressive distributed lag bound testing technique for the period of 1990 2019. The empirical results show a long-run cointegration relationship among the variables. The long-run estimation results, however, reveal that, economic growth, and trade openness have a positive and significant impact on carbon dioxide emissions, whereas all variables have a negative and significant impact on carbon dioxide emissions, in the short-run. The findings suggest that the government should emphasize programs and policies that reduce carbon dioxide emissions by opening the trade sector, considering the roles that openness plays in reducing environmental degradation in the country, which directly enhances environmental quality.

Suggested Citation

  • Zouheyr Gheraia & Sawssan Saadaoui & Hanane Abdelli & Naeimah Fahad S. Almawishir & Naif Nadi Abaalkaif, 2023. "Does Financial Development Really Improve Environmental Quality in Al-Jouf Region? Empirical Contribution to the Environmental Politics," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 194-201, July.
    • Handle: RePEc:eco:journ2:2023-04-22
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    More about this item

    Keywords

    ARDL; Economic Growth; Financial Development; Trade Openness; Saudi Arabia;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights

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