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The Impact of Using Renewable Energy Resources on Sustainable Development in the Kingdom of Saudi Arabia

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  • Abdullah Sultan Al Shammre

    (Economics Department, College of Business Administration, King Faisal University, Al-Ahsa 31982, Saudi Arabia)

Abstract

This study examines the impact of renewable energy on sustainable development in the Kingdom of Saudi Arabia from 2000 to 2019 and analyzes the kingdom’s most essential practices in this field to achieve sustainable development. The Cobb–Douglas production function is used in this study to investigate the impact of renewable energy on sustainable development using ordinary least squares (OLS) estimation. According to the findings, renewable energy consumption has a negative but insignificant effect on GDP. Additionally, traditional energy consumption has a major negative influence on GDP. The findings also demonstrate that fixed capital formulation and technical progress have a significant positive impact on Saudi Arabia’s sustainable development. Furthermore, while the labor force has a positive impact on GDP, this effect is not statistically significant. This report provides some recommendations for Saudi government policymakers to reform the country’s energy efficiency and consumption technologies in order to reduce energy waste and satisfy the goals of sustainable development. While the labor force is recognized as having a positive influence on GDP, it is notable that this result lacks statistical significance. The suggestions of these findings are mainly applicable to Saudi policymakers, and we present recommendations to improve energy competence and utilization technologies. Specially, our suggestions are intended to reduce energy dissipation and to support the objectives of sustainable development.

Suggested Citation

  • Abdullah Sultan Al Shammre, 2024. "The Impact of Using Renewable Energy Resources on Sustainable Development in the Kingdom of Saudi Arabia," Sustainability, MDPI, vol. 16(3), pages 1-16, February.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:3:p:1324-:d:1333265
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    References listed on IDEAS

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    1. Lach, Łukasz, 2010. "Fixed capital and long run economic growth: evidence from Poland," MPRA Paper 52280, University Library of Munich, Germany.
    2. Tooryan, Fatemeh & HassanzadehFard, Hamid & Collins, Edward R. & Jin, Shuangshuang & Ramezani, Bahram, 2020. "Smart integration of renewable energy resources, electrical, and thermal energy storage in microgrid applications," Energy, Elsevier, vol. 212(C).
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    4. Georges Harb & Charbel Bassil, 2023. "TFP in the Manufacturing Sector: Long-Term Dynamics, Country and Regional Comparative Analysis," Economies, MDPI, vol. 11(2), pages 1-22, January.
    5. Ergül Halisçelik & Mehmet Ali Soytas, 2019. "Sustainable development from millennium 2015 to Sustainable Development Goals 2030," Sustainable Development, John Wiley & Sons, Ltd., vol. 27(4), pages 545-572, July.
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    Cited by:

    1. Nouf Alsulamy & Aqsa Shoukat & Islam Elgammal, 2025. "Business Strategies for Managing Non-Renewable Energy Dynamics in Saudi Arabia’s Manufacturing Sector," Sustainability, MDPI, vol. 17(10), pages 1-17, May.
    2. Hakim Laid Mouloud Benhacene & Asaad Mubarak Hussien, 2025. "The Impact of Adopting Renewable Energy Resources on Sustainable Development in Saudi Arabia: A Qualitative View," Sustainability, MDPI, vol. 17(2), pages 1-22, January.
    3. Asaad Mubarak Hussien Musa & Rayan Alqubaysi & Hassan Ali Alqahtani, 2025. "The Effect of Board Characteristics on ESG Commitment in Saudi Arabia: How Diversity, Independence, Size, and Expertise Shape Corporate Sustainability Practices," Sustainability, MDPI, vol. 17(12), pages 1-22, June.
    4. Nagwa Amin Abdelkawy & Abdullah Sultan Al Shammre, 2025. "A Tailored ESG Framework for Economic Growth in Saudi Arabia: ARDL Evidence from 1990 to 2022," Sustainability, MDPI, vol. 17(12), pages 1-19, June.

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