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Economic Impact of Renewable Energy on Sustainable Development in Saudi Arabia

Author

Listed:
  • Houcine Benlaria

    (Department of Business Administration, Jouf University, Sakakah, Saudi Arabia,)

  • Abu Alhassan Jumaa Hamid Hamad

    (College of Science and Humanity Studies, Prince Sattam Bin Abdulaziz University, Al-Kharj, Saudi Arabia)

Abstract

This paper studies the asymmetric relationship between renewable energy consumption and economic growth incorporating capital and labor for the case of Saudi Arabia during the period 1990-2019. The nonlinear lagged cointegration (NARDL) model is applied to examine the asymmetric cointegration between the variables. The results indicate that there is an asymmetric relationship between the variables considered. The negative labor shock improves economic growth, while a positive shock reduces (increases) economic growth in the short term. Therefore, policies to promote economic growth, such as the need to improve the quality of financial development and preserve fiscal sustainability, are crucial to improve the renewable energy sector in Saudi Arabia. At the same time, it is essential that the renewable energy sector must also be oriented towards productive development projects.

Suggested Citation

  • Houcine Benlaria & Abu Alhassan Jumaa Hamid Hamad, 2022. "Economic Impact of Renewable Energy on Sustainable Development in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 311-318, September.
    • Handle: RePEc:eco:journ2:2022-05-37
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    References listed on IDEAS

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    Cited by:

    1. Mohammad Imdadul Haque & Mohammad Rumzi Tausif, 2024. "Examining the Energy-Growth Dynamics in Saudi Arabia: Insights and Policy Implications," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 697-706, November.
    2. Khairul Aswadi & Abd. Jamal & Sofyan Syahnur & Muhammad Nasir, 2023. "Renewable and Non-renewable Energy Consumption in Indonesia: Does it Matter for Economic Growth?," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 107-116, March.
    3. Houcine Benlaria & Naeimah Fahad S. Almawishir, 2024. "The Relationship between Electricity Consumption, Price of Oils, and Gross Domestic Product in the Gulf Cooperation Council Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 66-75, January.
    4. Ahmed Benlaria & Naima Sadaoui & Naeimah Fahad S. Almawishir & Houcine Benlaria, 2024. "Navigating the Oil-environment Nexus: Saudi Arabia’s Challenge in Sustainable Development," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 292-300, September.

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    More about this item

    Keywords

    Asymmetry; Economic growth; NARDL; Shocks; Renewable energy consumption;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting

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