The impact of renewable energy consumption on carbon dioxide emissions and economic growth in the Kingdom of Saudi Arabia

Abstract

This study aims to show the relationship between the impact of energy consumption on carbon dioxide emissions and economic growth. Using quantitative indicators of energy consumption ratios, carbon dioxide emissions, and economic growth in Saudi Arabia, we try to measure the impact of various variables by taking into account the economic factors of the sample country. The application of a multivariate model of economic growth and renewable energy with carbon dioxide emissions monitored between 1990 and 2018 has been used. The empirical results indicate a unidirectional causal relationship between GDP and energy consumption. A unidirectional causal relationship is between energy consumption and long-term CO2 emissions. The results suggest that carbon dioxide emissions and energy consumption are not driving economic growth. Therefore, Saudi Arabia can maintain a conservative energy policy and a long-term carbon reduction policy without hindering economic growth.