The Nexus between Environmental Quality, Economic Growth, and Trade Openness in Saudi Arabia (1990-2017)

In fact, this study endeavors to explore the relationship between CO2 emissions, trade, and economic growth using the simultaneous equation for Saudi Arabia over the period 1990–2017, using the VAR model and the impulse response functions to examine the relationship between these variables. Therefo...

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Main Authors: Saida Daly, Mohamed Abdouli
Format: Article
Language:English
Published: EconJournals 2023-07-01
Series:International Journal of Energy Economics and Policy
Subjects:
Online Access:http://econjournals.com/index.php/ijeep/article/view/14119
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author Saida Daly
Mohamed Abdouli
author_facet Saida Daly
Mohamed Abdouli
author_sort Saida Daly
collection DOAJ
description In fact, this study endeavors to explore the relationship between CO2 emissions, trade, and economic growth using the simultaneous equation for Saudi Arabia over the period 1990–2017, using the VAR model and the impulse response functions to examine the relationship between these variables. Therefore, the obtained results showed that there is evidence of a bidirectional causality between CO2 emissions and economic growth. Moreover, the feedback hypothesis between trade openness and CO2 emissions is validated. Then, the retroaction hypothesis between economic growth and trade openness is identified.  Furthermore, our results indicate economic growth impede environmental quality, while our empirical results have established crucial relationships that have important policy implications. However, it is mandatory for policy makers to develop economic, environmental and outside policies to promote economic growth and trade and improve the environmental quality.
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spelling doaj.art-6cb46a0c546e4536992183509fd25b112023-07-13T14:35:05ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532023-07-0113410.32479/ijeep.14119The Nexus between Environmental Quality, Economic Growth, and Trade Openness in Saudi Arabia (1990-2017)Saida Daly0Mohamed Abdouli1Department of Economics and Finance, College of Business and Economics, Qassim University, P.O. Box 6640, Buraidah 51452, Qassim, Saudi Arabia; & Department of Economics, Faculty of Economic Sciences and Management of Mahdia, University of Monastir, Monastir 5000, Tunisia,Development Economics Laboratory, Faculty of Economics and Management of Sfax, Tunisia; & Doctoral School in Economics and Management, Faculty of Economics and Management of Sousse, Tunisia. In fact, this study endeavors to explore the relationship between CO2 emissions, trade, and economic growth using the simultaneous equation for Saudi Arabia over the period 1990–2017, using the VAR model and the impulse response functions to examine the relationship between these variables. Therefore, the obtained results showed that there is evidence of a bidirectional causality between CO2 emissions and economic growth. Moreover, the feedback hypothesis between trade openness and CO2 emissions is validated. Then, the retroaction hypothesis between economic growth and trade openness is identified.  Furthermore, our results indicate economic growth impede environmental quality, while our empirical results have established crucial relationships that have important policy implications. However, it is mandatory for policy makers to develop economic, environmental and outside policies to promote economic growth and trade and improve the environmental quality. http://econjournals.com/index.php/ijeep/article/view/14119Economic growth; CO2 emissions; Trade openness; VAR model; Saudi Arabia
spellingShingle Saida Daly
Mohamed Abdouli
The Nexus between Environmental Quality, Economic Growth, and Trade Openness in Saudi Arabia (1990-2017)
International Journal of Energy Economics and Policy
Economic growth; CO2 emissions; Trade openness; VAR model; Saudi Arabia
title The Nexus between Environmental Quality, Economic Growth, and Trade Openness in Saudi Arabia (1990-2017)
title_full The Nexus between Environmental Quality, Economic Growth, and Trade Openness in Saudi Arabia (1990-2017)
title_fullStr The Nexus between Environmental Quality, Economic Growth, and Trade Openness in Saudi Arabia (1990-2017)
title_full_unstemmed The Nexus between Environmental Quality, Economic Growth, and Trade Openness in Saudi Arabia (1990-2017)
title_short The Nexus between Environmental Quality, Economic Growth, and Trade Openness in Saudi Arabia (1990-2017)
title_sort nexus between environmental quality economic growth and trade openness in saudi arabia 1990 2017
topic Economic growth; CO2 emissions; Trade openness; VAR model; Saudi Arabia
url http://econjournals.com/index.php/ijeep/article/view/14119
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