Economic Growth and Environmental Degradation in Saudi Arabia

Abstract

This paper has for objective to examine the effects of the economic growth, energy use and trade openness on carbon dioxide (CO₂) emissions for the case of the Kingdom of Saudi Arabia by estimating what is called the environmental Kuznets curve (EKC) model over the period 1970-2012. Our findings infirm the existence of EKC whereas they indicate that Saudi Arabia would be in its ascending phase of the environmental Kuznets curve. We notice that the per capita GDP and the per capita energy use increase CO₂ emissions whereas trade openness does not have a significant effect on CO₂ emissions. Our results suggest that growth targets should be accompanied with the measures of adaptation and strategies of development which plan limits in energy use and CO₂ emissions in Saudi Arabia.

Keywords: Economic growth; Energy use, CO₂ emissions; environmental Kuznets curve; Saudi Arabia.