Determinants of environmental sustainability: Evidence from Saudi Arabia

Policymakers in many developing countries are facing pressures between the needs of environmental sustainability. In this context, the present article aims to examine the determinants of environmental sustainability in Saudi Arabia by addressing the following two questions: Is there an EKC in Saudi...

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Published in:	The Science of the total environment Vol. 657; pp. 1592 - 1601
Main Authors:	Omri, Anis, Euchi, Jalel, Hasaballah, Abdel Hafiez, Al-Tit, Ahmad
Format:	Journal Article
Language:	English
Published:	Netherlands Elsevier B.V 20.03.2019
Subjects:	Determinants of CO2 reduction developing countries environmental degradation environmental sustainability human development international trade issues and policy Linear and non-linear analysis per-capita income Saudi Arabia Turning points Saudi Arabia Determinants of CO2 reduction Linear and non-linear analysis Turning points Determinants of CO reduction
ISSN:	0048-9697, 1879-1026, 1879-1026
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Abstract	Policymakers in many developing countries are facing pressures between the needs of environmental sustainability. In this context, the present article aims to examine the determinants of environmental sustainability in Saudi Arabia by addressing the following two questions: Is there an EKC in Saudi Arabia? Does financial development, human development, FDI, and trade openness lead to environmental improvement in Saudi Arabia? The empirical findings show that (i) per capita income, financial development, FDI and foreign trade positively contributes to environmental degradation; (ii) EKC hypothesis is validated in the case of Saudi Arabia; (iii) environmental degradation is very sensitive to the levels of financial development, FDI, and foreign trade; and corresponding thresholds were calculated. Policy makers in Saudi Arabia are invited to augment these variables at the level of the calculated thresholds (turning point) to attain the desired impact on environmental improvement. [Display omitted] •Our finding shows that financial development, GDP, FDI and trade contribute negatively to environmental quality.•We also confirm the validity of EKC hypothesis in Saudi Arabia.•Inverted U-shape relationships are found between emissions and the variables FDI, financial development, and trade.•Corresponding thresholds are calculated and discussed.
AbstractList	Policymakers in many developing countries are facing pressures between the needs of environmental sustainability. In this context, the present article aims to examine the determinants of environmental sustainability in Saudi Arabia by addressing the following two questions: Is there an EKC in Saudi Arabia? Does financial development, human development, FDI, and trade openness lead to environmental improvement in Saudi Arabia? The empirical findings show that (i) per capita income, financial development, FDI and foreign trade positively contributes to environmental degradation; (ii) EKC hypothesis is validated in the case of Saudi Arabia; (iii) environmental degradation is very sensitive to the levels of financial development, FDI, and foreign trade; and corresponding thresholds were calculated. Policy makers in Saudi Arabia are invited to augment these variables at the level of the calculated thresholds (turning point) to attain the desired impact on environmental improvement. Policymakers in many developing countries are facing pressures between the needs of environmental sustainability. In this context, the present article aims to examine the determinants of environmental sustainability in Saudi Arabia by addressing the following two questions: Is there an EKC in Saudi Arabia? Does financial development, human development, FDI, and trade openness lead to environmental improvement in Saudi Arabia? The empirical findings show that (i) per capita income, financial development, FDI and foreign trade positively contributes to environmental degradation; (ii) EKC hypothesis is validated in the case of Saudi Arabia; (iii) environmental degradation is very sensitive to the levels of financial development, FDI, and foreign trade; and corresponding thresholds were calculated. Policy makers in Saudi Arabia are invited to augment these variables at the level of the calculated thresholds (turning point) to attain the desired impact on environmental improvement.Policymakers in many developing countries are facing pressures between the needs of environmental sustainability. In this context, the present article aims to examine the determinants of environmental sustainability in Saudi Arabia by addressing the following two questions: Is there an EKC in Saudi Arabia? Does financial development, human development, FDI, and trade openness lead to environmental improvement in Saudi Arabia? The empirical findings show that (i) per capita income, financial development, FDI and foreign trade positively contributes to environmental degradation; (ii) EKC hypothesis is validated in the case of Saudi Arabia; (iii) environmental degradation is very sensitive to the levels of financial development, FDI, and foreign trade; and corresponding thresholds were calculated. Policy makers in Saudi Arabia are invited to augment these variables at the level of the calculated thresholds (turning point) to attain the desired impact on environmental improvement. Policymakers in many developing countries are facing pressures between the needs of environmental sustainability. In this context, the present article aims to examine the determinants of environmental sustainability in Saudi Arabia by addressing the following two questions: Is there an EKC in Saudi Arabia? Does financial development, human development, FDI, and trade openness lead to environmental improvement in Saudi Arabia? The empirical findings show that (i) per capita income, financial development, FDI and foreign trade positively contributes to environmental degradation; (ii) EKC hypothesis is validated in the case of Saudi Arabia; (iii) environmental degradation is very sensitive to the levels of financial development, FDI, and foreign trade; and corresponding thresholds were calculated. Policy makers in Saudi Arabia are invited to augment these variables at the level of the calculated thresholds (turning point) to attain the desired impact on environmental improvement. [Display omitted] •Our finding shows that financial development, GDP, FDI and trade contribute negatively to environmental quality.•We also confirm the validity of EKC hypothesis in Saudi Arabia.•Inverted U-shape relationships are found between emissions and the variables FDI, financial development, and trade.•Corresponding thresholds are calculated and discussed.
Author	Euchi, Jalel Omri, Anis Hasaballah, Abdel Hafiez Al-Tit, Ahmad
Author_xml	– sequence: 1 givenname: Anis surname: Omri fullname: Omri, Anis email: A.Omri@qu.edu.sa organization: College of Business and Economics (CBE), Qassim University, Saudi Arabia – sequence: 2 givenname: Jalel surname: Euchi fullname: Euchi, Jalel email: J.Eleuchi@qu.edu.sa organization: College of Business and Economics (CBE), Qassim University, Saudi Arabia – sequence: 3 givenname: Abdel Hafiez surname: Hasaballah fullname: Hasaballah, Abdel Hafiez email: a.ibrahim@qu.edu.sa organization: College of Business and Economics (CBE), Qassim University, Saudi Arabia – sequence: 4 givenname: Ahmad surname: Al-Tit fullname: Al-Tit, Ahmad email: aa.altit@qu.edu.sa organization: College of Business and Economics (CBE), Qassim University, Saudi Arabia
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Keywords	Determinants of CO2 reduction Linear and non-linear analysis Turning points Determinants of CO reduction
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Snippet	Policymakers in many developing countries are facing pressures between the needs of environmental sustainability. In this context, the present article aims to...
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SubjectTerms	Determinants of CO2 reduction developing countries environmental degradation environmental sustainability human development international trade issues and policy Linear and non-linear analysis per-capita income Saudi Arabia Turning points
Title	Determinants of environmental sustainability: Evidence from Saudi Arabia
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