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The Role of Environmental Innovation and Green Energy Deployment in Environmental Protection: Evidence from Saudi Arabia

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Abstract

The main goal of this investigation is to apply a comparative analysis to look at the influence of green energy and environmental innovation on four environmental indicators. This investigation is based on Saudi Arabia’s economy with data spanning from 1990 to 2018. In this study, several econometric approaches were applied, including the unit root test, the cointegration test of Johansen (1988), and the DOLS (Dynamic OLS) estimation methodology. The empirical outcomes demonstrate that (i) the Environmental Kuznets curve (EKC) assumption in Saudi Arabia is not validated; (ii) the unconditional effects of the indicator of economic growth contribute to environmental degradation in all estimated models; (iii) the indicators of green energy use and environmental innovation contribute to environmental improvement but the magnitude of their effects is extremely slight; and (iiii) the net effect of both joint impacts (i.e., the interaction between green energy usage and economic growth as well as between environmental innovation and economic growth) for each estimated model yields a positive sign which implies that the green energy industry is in its immature stage in Saudi Arabia and innovations in green technology require a high status of scientific research to have a major contribution to environmental improvement. In light of obtained results, policy implications are discussed.

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Acknowledgements

The authors gratefully acknowledge Qassim University, represented by the Deanship of Scientific Research, on the financial support for this research under the number 10266-cbe-2020-1-3-I during the academic year 1442AH/2020 AD.

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Authors and Affiliations

  1. Department of Finance and Economics, College of Business and Economics, Qassim University, P.O.Box: 6640, Buraidah, Qassim, 51452, Saudi Arabia

    Montassar Kahia

  2. LAREQUAD & FSEGT, University of Tunis El-Manar, Tunis, Tunisia

    Montassar Kahia

  3. Department of Accounting, College of Business and Economics, Qassim University, P.O.Box: 6640, Buraidah, Qassim, 51452, Saudi Arabia

    Bilel Jarraya

  4. Community College Management Information Systems Department, University of Ha’il, Ha’il, Saudi Arabia

    Bassem kahouli

  5. Department of Business Administration, College of Business and Economics, Qassim University, P.O. Box: 6640, Buraidah, Qassim, 51452, Saudi Arabia

    Anis Omri

  6. Department of Economics, Faculty of Economics and Management of Nabeul, University of Carthage, Carthage, Tunisia

    Montassar Kahia & Anis Omri

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  1. Montassar Kahia
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Kahia, M., Jarraya, B., kahouli, B. et al. The Role of Environmental Innovation and Green Energy Deployment in Environmental Protection: Evidence from Saudi Arabia. J Knowl Econ (2022). https://doi.org/10.1007/s13132-022-01093-9

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