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Impact of Economic Growth, Energy Consumption and Urbanization on Carbon Dioxide Emissions in the Kingdom of Saudi Arabia

Author

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  • Ali, Amjad
  • Sumaira, Sumaira
  • Siddique, Hafiz Muhammad Abubakar
  • Ashiq, Saima
Abstract
The Kingdom of Saudi Arabia has witnessed unprecedented economic growth in recent decades, propelling it onto the global stage. However, this rapid growth is often associated with a notable increase in carbon dioxide emissions, which carry significant environmental ramifications. In light of this pressing concern, this research undertakes a comprehensive examination of the intricate relationships between economic growth, energy consumption, urbanization, and carbon dioxide emissions within the Kingdom of Saudi Arabia from 1980 to 2020. This study employs autoregressive distributed lag approach to uncover the multifaceted dynamics at play. The empirical findings of the study reveal a compelling narrative about the Kingdom's natural landscape. Particularly noteworthy is the revelation that economic growth, urbanization, and energy consumption emerge as pivotal long-term drivers of escalating pollution. These findings underscore the critical necessity for policies that strike a balance between economic development and environmental preservation. Furthermore, the study disentangles the intricate web of causation among these factors. It becomes evident that economic growth and pollution exhibit bidirectional causality, illuminating the intricate connection between economic prosperity and environmental consequences. Additionally, commercial activities have been empirically shown to exert a substantial influence on pollution levels in the Kingdom of Saudi Arabia. To address these challenges, a pivotal shift towards a low-carbon technological revolution is proposed as a means of achieving sustained economic development. This transition towards environmentally friendly technologies holds the potential to decouple economic growth from environmental degradation, paving the way for a greener and more prosperous future for the Kingdom of Saudi Arabia.

Suggested Citation

  • Ali, Amjad & Sumaira, Sumaira & Siddique, Hafiz Muhammad Abubakar & Ashiq, Saima, 2023. "Impact of Economic Growth, Energy Consumption and Urbanization on Carbon Dioxide Emissions in the Kingdom of Saudi Arabia," MPRA Paper 118832, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:118832
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    2. Laiba Manzoor & Qudsia Piracha & Saif Ur Rahman & Salman Masood Sheikh, 2023. "Impact of Renewable Energy and Globalization on Environmental Pollution in Asian Countries: A Review," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(4), pages 628-633.
    3. Marc Audi & Marc Poulin & Amjad Ali, 2024. "Environmental Impact of Business Freedom and Renewable Energy: A Global Perspective," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 672-683, May.
    4. Uzma Ghafoor & Muhammad Ramzan Sheikh & Afsheen Baqir, 2023. "Green Growth, Environmental Quality, Energy Consumption Nexus in OECD Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(4), pages 409-418.
    5. Sulehri, Fiaz Ahmad & Ali, Amjad, 2024. "Country Risk and Sustainable Development: Mediating Role of Economic Growth," MPRA Paper 121290, University Library of Munich, Germany.
    6. Roussel, Yannick & Audi, Marc, 2024. "Exploring the Nexus of Economic Expansion, Tourist Inflows, and Environmental Sustainability in Europe," MPRA Paper 121529, University Library of Munich, Germany.
    7. Aiman Butt & Umair Butt & Salman Masood Sheikh & Saif Ur Rahman, 2023. "Exploring the Nexus of Eco Digitalization, Financial Globalization, and Renewable Energy in Mitigating CO2 Emissions: A Review of China," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(4), pages 616-620.
    8. Aleena Shamim & Sana Raza & Saif Ur Rahman & Salman Masood Sheikh, 2023. "Examining the Influence of Green Finance, FinTech, and Environmental Innovation on Environmental Degradation in G-20 Nations: A Comprehensive Review," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(4), pages 621-627.
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    More about this item

    Keywords

    Economic Growth; Energy Consumption; Urbanization; Kingdom of Saudi Arabia;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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