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The Significance of Governance Indicators to Achieve Carbon Neutrality: A New Insight of Life Expectancy

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  • Ghazala Aziz

    (Department of Business Administration, College of Administrative and Financial Sciences, Saudi Electronic University, Jeddah 93499, Saudi Arabia)

  • Rida Waheed

    (Department of Finance and Economics, College of Business, University of Jeddah, Jeddah 23218, Saudi Arabia)

  • Suleman Sarwar

    (Department of Finance and Economics, College of Business, University of Jeddah, Jeddah 23218, Saudi Arabia)

  • Mohd Saeed Khan

    (Department of Finance and Economics, College of Business, University of Jeddah, Jeddah 23218, Saudi Arabia)

Abstract

This paper investigates the impact of life expectancy on carbon emission, in Saudi Arabia. Additionally, we examined the role of governance to achieve carbon neutrality status. We used the novel dynamic ARDL technique for estimations. This is one of the pioneer studies that analyze the role of life expectancy to control carbon emissions. The coefficients of life expectancy, education, and political stability are significantly negative. On contrary, governance effectiveness is an obstacle to achieving carbon neutrality. Empirical findings of life expectancy and governance effectiveness are quite surprising. In terms of Vision 2030 estimations, the coefficient of corruption control is significant and negative, indicating that the Saudi government has prioritized corruption control. While governance effectiveness remains positive, the Saudi government still requires governance reforms in order to achieve carbon neutrality goals.

Suggested Citation

  • Ghazala Aziz & Rida Waheed & Suleman Sarwar & Mohd Saeed Khan, 2022. "The Significance of Governance Indicators to Achieve Carbon Neutrality: A New Insight of Life Expectancy," Sustainability, MDPI, vol. 15(1), pages 1-20, December.
    • Handle: RePEc:gam:jsusta:v:15:y:2022:i:1:p:766-:d:1021834
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