IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2024-01-68.html
   My bibliography  Save this article

Air Pollution and Economic Development in KSA: Environmental Kuznets Curve and Implications for Sustainable Development

Author

Listed:
  • Mehdi Abid

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

  • Zouheyr Gheraia

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

  • Habib Sekrafi

    (Laboratory for the Valorization of Natural and Cultural Heritage (VPNC) University of Jendouba, Jendouba, Tunisia)

  • Hanane Abdelli

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

Abstract

In a global context increasingly concerned about climate hazards, understanding the impact of economic growth on the environment is becoming crucial, especially for developing countries. This paper addresses this issue through the lens of carbon dioxide (CO2) emissions and examines how economic growth affects the environment in the case of KSA. The objective of this study is to test the validity of the environmental Kuznets curve over the period 1990-2020 using the Granger causality test. The results of the test indicate a long-term relationship between the variables, and the results of the long-term model confirm the environmental Kuznets curve hypothesis for the Saudi economy with a GDP per capita turning point of US$ 19977,794. The results suggest that there is a bi-directional, short-term causal relationship. The long-term causality is unidirectional from income to CO2 emissions. Our results suggest that the KSA should distinguish between economic policy and environmental policy to improve its environmental quality. Economic expansion leads to an increase in the level of pollution and the concentration of GHGs in the atmosphere if the government does not take the necessary precautions.

Suggested Citation

  • Mehdi Abid & Zouheyr Gheraia & Habib Sekrafi & Hanane Abdelli, 2024. "Air Pollution and Economic Development in KSA: Environmental Kuznets Curve and Implications for Sustainable Development," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 628-639, January.
    • Handle: RePEc:eco:journ2:2024-01-68
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/15061/7717
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/15061
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. de Bruyn, S. M. & van den Bergh, J. C. J. M. & Opschoor, J. B., 1998. "Economic growth and emissions: reconsidering the empirical basis of environmental Kuznets curves," Ecological Economics, Elsevier, vol. 25(2), pages 161-175, May.
    2. Halicioglu, Ferda, 2009. "An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey," Energy Policy, Elsevier, vol. 37(3), pages 1156-1164, March.
    3. Pata, Ugur Korkut & Caglar, Abdullah Emre, 2021. "Investigating the EKC hypothesis with renewable energy consumption, human capital, globalization and trade openness for China: Evidence from augmented ARDL approach with a structural break," Energy, Elsevier, vol. 216(C).
    4. Azomahou, Theophile & Laisney, Francois & Nguyen Van, Phu, 2006. "Economic development and CO2 emissions: A nonparametric panel approach," Journal of Public Economics, Elsevier, vol. 90(6-7), pages 1347-1363, August.
    5. Omri, Anis, 2013. "CO2 emissions, energy consumption and economic growth nexus in MENA countries: Evidence from simultaneous equations models," Energy Economics, Elsevier, vol. 40(C), pages 657-664.
    6. Chen, Sheng-Tung & Kuo, Hsiao-I & Chen, Chi-Chung, 2007. "The relationship between GDP and electricity consumption in 10 Asian countries," Energy Policy, Elsevier, vol. 35(4), pages 2611-2621, April.
    7. Frodyma, Katarzyna & Papież, Monika & Śmiech, Sławomir, 2022. "Revisiting the Environmental Kuznets Curve in the European Union countries," Energy, Elsevier, vol. 241(C).
    8. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    9. Holtz-Eakin, Douglas & Selden, Thomas M., 1995. "Stoking the fires? CO2 emissions and economic growth," Journal of Public Economics, Elsevier, vol. 57(1), pages 85-101, May.
    10. Lucas, Robert E.B. & Wheeler, David & Hettige, Hemamala, 1992. "Economic development, environmental regulation, and the international migration of toxic industrial pollution : 1960-88," Policy Research Working Paper Series 1062, The World Bank.
    11. Birdsall, Nancy, 1992. "Another look at population and global warming," Policy Research Working Paper Series 1020, The World Bank.
    12. Sahbi Farhani & Daniel Balsalobre-Lorente, 2020. "Comparing the Role of Coal to Other Energy Resources in the Environmental Kuznets Curve of Three Large Economies," Chinese Economy, Taylor & Francis Journals, vol. 53(1), pages 82-120, January.
    13. Martin Gassebner & Michael J. Lamla & Jan-Egbert Sturm, 2011. "Determinants of pollution: what do we really know?," Oxford Economic Papers, Oxford University Press, vol. 63(3), pages 568-595, July.
    14. Wilman-Santiago Ochoa-Moreno & Byron Alejandro Quito & Carlos Andrés Moreno-Hurtado, 2021. "Foreign Direct Investment and Environmental Quality: Revisiting the EKC in Latin American Countries," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    15. Mark Heil & Thomas Selden, 1999. "Panel stationarity with structural breaks: carbon emissions and GDP," Applied Economics Letters, Taylor & Francis Journals, vol. 6(4), pages 223-225.
    16. Atif Jahanger & Muhammad Usman & Daniel Balsalobre‐Lorente, 2022. "Linking institutional quality to environmental sustainability," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1749-1765, December.
    17. Ang, James B., 2007. "CO2 emissions, energy consumption, and output in France," Energy Policy, Elsevier, vol. 35(10), pages 4772-4778, October.
    18. Auci, Sabrina & Becchetti, Leonardo, 2006. "The instability of the adjusted and unadjusted environmental Kuznets curves," Ecological Economics, Elsevier, vol. 60(1), pages 282-298, November.
    19. Pei-Zhi Liu & Seema Narayan & Yi-Shuai Ren & Yong Jiang & Konstantinos Baltas & Basil Sharp, 2022. "Re-Examining the Income–CO 2 Emissions Nexus Using the New Kink Regression Model: Does the Kuznets Curve Exist in G7 Countries?," Sustainability, MDPI, vol. 14(7), pages 1-18, March.
    20. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    21. Roxana Pincheira & Felipe Zuniga, 2021. "Environmental Kuznets curve bibliographic map: a systematic literature review," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(S1), pages 1931-1956, April.
    22. Ren, Shenggang & Yuan, Baolong & Ma, Xie & Chen, Xiaohong, 2014. "International trade, FDI (foreign direct investment) and embodied CO2 emissions: A case study of Chinas industrial sectors," China Economic Review, Elsevier, vol. 28(C), pages 123-134.
    23. Singhania, Monica & Saini, Neha, 2021. "Demystifying pollution haven hypothesis: Role of FDI," Journal of Business Research, Elsevier, vol. 123(C), pages 516-528.
    24. Liu, Yaping & Sadiq, Farah & Ali, Wajahat & Kumail, Tafazal, 2022. "Does tourism development, energy consumption, trade openness and economic growth matters for ecological footprint: Testing the Environmental Kuznets Curve and pollution haven hypothesis for Pakistan," Energy, Elsevier, vol. 245(C).
    25. Vishal C. Jaunky, 2010. "Divergence of electric power consumption:evidence from the SAPP," Journal of Developing Areas, Tennessee State University, College of Business, vol. 44(1), pages 123-147, September.
    26. Anwar Khan & Yang Chenggang & Wang Xue Yi & Jamal Hussain & Liu Sicen & Sadia Bano, 2021. "Examining the pollution haven, and environmental kuznets hypothesis for ecological footprints: an econometric analysis of China, India, and Pakistan," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 26(3), pages 462-482, July.
    27. Abid Rashid Gill & Sallahuddin Hassan & K Kuperan Viswanathan, 2019. "Is democracy enough to get early turn of the environmental Kuznets curve in ASEAN countries?," Energy & Environment, , vol. 30(8), pages 1491-1505, December.
    28. Halkos, George E. & Tsionas, Efthymios G., 2001. "Environmental Kuznets curves: Bayesian evidence from switching regime models," Energy Economics, Elsevier, vol. 23(2), pages 191-210, March.
    29. Nasir, Muhammad & Ur Rehman, Faiz, 2011. "Environmental Kuznets Curve for carbon emissions in Pakistan: An empirical investigation," Energy Policy, Elsevier, vol. 39(3), pages 1857-1864, March.
    30. Friedl, Birgit & Getzner, Michael, 2003. "Determinants of CO2 emissions in a small open economy," Ecological Economics, Elsevier, vol. 45(1), pages 133-148, April.
    31. Cole, Matthew A., 2004. "Trade, the pollution haven hypothesis and the environmental Kuznets curve: examining the linkages," Ecological Economics, Elsevier, vol. 48(1), pages 71-81, January.
    32. Richmond, Amy K. & Kaufmann, Robert K., 2006. "Is there a turning point in the relationship between income and energy use and/or carbon emissions?," Ecological Economics, Elsevier, vol. 56(2), pages 176-189, February.
    33. Doytch, Nadia & Uctum, Merih, 2016. "Globalization and the environmental impact of sectoral FDI," Economic Systems, Elsevier, vol. 40(4), pages 582-594.
    34. Mahadevan, Renuka & Asafu-Adjaye, John, 2007. "Energy consumption, economic growth and prices: A reassessment using panel VECM for developed and developing countries," Energy Policy, Elsevier, vol. 35(4), pages 2481-2490, April.
    35. Jayanthakumaran, Kankesu & Verma, Reetu & Liu, Ying, 2012. "CO2 emissions, energy consumption, trade and income: A comparative analysis of China and India," Energy Policy, Elsevier, vol. 42(C), pages 450-460.
    36. James H. Stock & Mark W. Watson, 1989. "New Indexes of Coincident and Leading Economic Indicators," NBER Chapters, in: NBER Macroeconomics Annual 1989, Volume 4, pages 351-409, National Bureau of Economic Research, Inc.
    37. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    38. Shafik, Nemat, 1994. "Economic Development and Environmental Quality: An Econometric Analysis," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 757-773, Supplemen.
    39. Kearsley, Aaron & Riddel, Mary, 2010. "A further inquiry into the Pollution Haven Hypothesis and the Environmental Kuznets Curve," Ecological Economics, Elsevier, vol. 69(4), pages 905-919, February.
    40. Bui Huy Nhuong & Phung Thanh Quang, 2022. "Are FDI Inflows Crucial for Environmental Protection in Various Asian Regions?," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 1-18, June.
    41. Apergis, Nicholas & Payne, James E. & Menyah, Kojo & Wolde-Rufael, Yemane, 2010. "On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth," Ecological Economics, Elsevier, vol. 69(11), pages 2255-2260, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sofien, Tiba & Omri, Anis, 2016. "Literature survey on the relationships between energy variables, environment and economic growth," MPRA Paper 82555, University Library of Munich, Germany, revised 14 Sep 2016.
    2. Omri, Anis & Daly, Saida & Rault, Christophe & Chaibi, Anissa, 2015. "Financial development, environmental quality, trade and economic growth: What causes what in MENA countries," Energy Economics, Elsevier, vol. 48(C), pages 242-252.
    3. Tiba, Sofien & Omri, Anis, 2017. "Literature survey on the relationships between energy, environment and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1129-1146.
    4. P. Srinivasan & Inder Siddanth Ravindra, 2015. "Causality among Energy Consumption, CO2 Emission, Economic Growth and Trade," Foreign Trade Review, , vol. 50(3), pages 168-189, August.
    5. Saboori, Behnaz & Sulaiman, Jamalludin & Mohd, Saidatulakmal, 2012. "Economic growth and CO2 emissions in Malaysia: A cointegration analysis of the Environmental Kuznets Curve," Energy Policy, Elsevier, vol. 51(C), pages 184-191.
    6. Sebri, Maamar, 2009. "La Zone Méditerranéenne Face à la Pollution de L’air : Une Investigation Econométrique [The Mediterranean Zone in front of Air pollution: an Econometric Investigation]," MPRA Paper 32382, University Library of Munich, Germany.
    7. Shahbaz, Muhammad & Haouas, Ilham & Hoang, Thi Hong Van, 2019. "Economic growth and environmental degradation in Vietnam: Is the environmental Kuznets curve a complete picture?," Emerging Markets Review, Elsevier, vol. 38(C), pages 197-218.
    8. Barra, Cristian & Zotti, Roberto, 2016. "Investigating the impact of national income on environmental pollution. International evidence," MPRA Paper 74149, University Library of Munich, Germany.
    9. Faridul, Islam & Muhammad, Shahbaz, 2012. "Is There an Environmental Kuznets Curve for Bangladesh?," MPRA Paper 38490, University Library of Munich, Germany, revised 30 Apr 2012.
    10. Guglielmo Maria Caporale & Gloria Claudio-Quiroga & Luis A. Gil-Alana, 2019. "CO2 Emissions and GDP: Evidence from China," CESifo Working Paper Series 7881, CESifo.
    11. Le Hoang Phong & Dang Thi Bach Van & Ho Hoang Gia Bao, 2018. "The Role of Globalization on CO2 Emission in Vietnam Incorporating Industrialization, Urbanization, GDP per Capita and Energy Use," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 275-283.
    12. Aida Sy & Tony Tinker & Abdelkader Derbali & Lamia Jamel, 2016. "Economic growth, financial development, trade openness, and CO 2 emissions in European countries," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 5(2), pages 155-179.
    13. Cristian Barra & Roberto Zotti, 2018. "Investigating the non-linearity between national income and environmental pollution: international evidence of Kuznets curve," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(1), pages 179-210, January.
    14. Bastola, Umesh & Sapkota, Pratikshya, 2015. "Relationships among energy consumption, pollution emission, and economic growth in Nepal," Energy, Elsevier, vol. 80(C), pages 254-262.
    15. Kaika, Dimitra & Zervas, Efthimios, 2013. "The Environmental Kuznets Curve (EKC) theory—Part A: Concept, causes and the CO2 emissions case," Energy Policy, Elsevier, vol. 62(C), pages 1392-1402.
    16. Balado-Naves, Roberto & Baños-Pino, José Francisco & Mayor, Matías, 2018. "Do countries influence neighbouring pollution? A spatial analysis of the EKC for CO2 emissions," Energy Policy, Elsevier, vol. 123(C), pages 266-279.
    17. Lamia Jamel & Samir Maktouf, 2017. "The nexus between economic growth, financial development, trade openness, and CO2 emissions in European countries," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1341456-134, January.
    18. MUTASCU Mihai & PEREAU Jean-Christophe & URSU Eugen, 2016. "A Wavelet Analysis of the Environmental Kuznets Curve in France," Cahiers du GREThA (2007-2019) 2016-10, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    19. Nasreen, Samia & Anwar, Sofia & Ozturk, Ilhan, 2017. "Financial stability, energy consumption and environmental quality: Evidence from South Asian economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 1105-1122.
    20. Shahbaz, Muhammad & Salah Uddin, Gazi & Ur Rehman, Ijaz & Imran, Kashif, 2014. "Industrialization, electricity consumption and CO2 emissions in Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 31(C), pages 575-586.

    More about this item

    Keywords

    CO2 Emissions; Economic Growth; Johansen Cointegration; KSA;
    All these keywords.

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2024-01-68. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.