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The Influence of Trade, Technology and Economic Growth on Environmental Sustainability in the Gulf Cooperation Countries—New Evidence with the MMQR Method

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  • Salim Ali Salim Omar

    (Department of Accounting and Finance, University of Mediterranean Karpasia, Nicosia 99138, Cyprus)

  • Wagdi M. S. Khalifa

    (Department of Accounting and Finance, University of Mediterranean Karpasia, Nicosia 99138, Cyprus)

  • Ponle H. Kareem

    (Department of Business, Cyprus Health and Social Sciences University, Nicosia 99138, Cyprus)

Abstract

The Gulf Cooperation Countries are rich in natural resources such as oil, yet they have serious environmental problems. These countries are also located in regions where there is abundance of sunshine, yet are not capitalizing on the use of solar energy—a clean source of fuel. They heavily rely on fossil fuels that are cheap and readily available in the region, causing serious environmental problems. This research investigates the role of trade, technology, and economic growth in improving environmental sustainability in this region; hence, covering the gap existing in the literature on how this region can address the problem of environmental sustainability. This research uses annual data of the Gulf Cooperation Countries for the period 1990 to 2022 and analyses it with the Methods of Moments Quantile Regression. The major findings presented in the research show the importance of technological innovations in ensuring the eradication of environmental deterioration. Technological innovation is observed to reduce environmental problems by 1.94 to 3.11 magnitude. The results also show that trade openness and natural resources rents fundamentally lower environmental deterioration in the long term by 0.02, and 0.05 to 0.09 magnitudes, respectively. However, the results show that economic growth, globalization, and financial development are harmful to environmental sustainability in this region. These factors tend to raise environmental damage by 0.14 to 0.24, 0.34 to 0.43, and 9.2 to 5.74 units on average, respectively. This research gives key policies towards advancing environmental sustainability through trade openness, natural resources rents, and technological innovation in the Gulf Cooperation Countries.

Suggested Citation

  • Salim Ali Salim Omar & Wagdi M. S. Khalifa & Ponle H. Kareem, 2025. "The Influence of Trade, Technology and Economic Growth on Environmental Sustainability in the Gulf Cooperation Countries—New Evidence with the MMQR Method," Sustainability, MDPI, vol. 17(2), pages 1-15, January.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:2:p:419-:d:1562314
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    References listed on IDEAS

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    1. Jamal Alnsour & Farah Mohammad AlNsour, 2025. "The Nexus Between Natural Resources, Renewable Energy and Economic Growth in the Gulf Cooperation Council Countries," Resources, MDPI, vol. 14(8), pages 1-20, July.
    2. Abdulmula Mohamed Almahdi Arab & Ponle Henry Kareem & Serdal Işıktaş, 2025. "Driving Sustainable Energy Goals: Testing the Impact of Investment, Technological Innovations, and Oil Rent on Renewable Energy Development in Brazil, Russia, India, China, and South Africa Economies," Sustainability, MDPI, vol. 17(7), pages 1-14, April.

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