Empirical Analysis of Non-Renewable Energy, Renewable Energy, Foreign Direct Investment, and Economic Growth on Environmental Sustainability

The study mainly focuses on checking the dynamic impact of nonrenewable energy, renewable energy, foreign direct investment, and economic growth on environmental sustainability by the newly developed bootstrap autoregressive distributed lag (ARDL) testing technique. ARDL being a dynamic model incorporates the capacity of giving both short and long runs series by the help of the first and second differences of the series. To this effect, the annual data covers a timeframe from the year 2000 up to 2023. On the other hand, Granger's causality analysis indicates that there is a one-way causative relationship between consumption of renewable and non-re renewable energies and environmental sustainability in relation to GDP in the United Arab Emirates. Moreover, the ARDL findings revealed that the coefficients of GDP showed positive values, whereas the quadratic GDP exhibited negative values. These findings support the validity of the EKC theory in the UAE, the negative relationship between FDI and environmental sustainability. Moreover, policymakers in the UAE must dedicate substantial financial resources towards the advancement of sustainable energy sources, while concurrently decreasing dependence on non-renewable fuels.