Transitioning to green energy: Assessing environmental development and sustainability in the Saudi Arabia

Abstract

The transition to green energy is critical for mitigating environmental challenges in the Gulf region, where economic growth and industrial expansion have contributed significantly to environmental degradation. This study evaluates the relationship between green energy development and environmental sustainability across Gulf countries, with a focus on Saudi Arabia, using data spanning 1990 to 2023. Employing advanced econometric techniques, including unit root tests, Johansen's co-integration analysis, and Dynamic OLS (DOLS) estimation, the study uncovers that while economic growth exacerbates carbon emissions and other environmental pressures, business innovation and industrial expansion positively influence the adoption of green energy technologies. Furthermore, green energy innovations are found to significantly reduce environmental degradation, underscoring their critical role in sustainability. The findings suggest a robust co-integration between economic and environmental indicators, with green energy development emerging as a viable pathway for achieving long-term sustainability. Policy implications emphasize the need for strategic investments in renewable energy and supportive regulations to enhance environmental outcomes and foster sustainable growth.