Renewable Energy and Economic Growth in Saudi Arabia: A Test of Interrelationship

Authors

Saad I. A. Elkalawy, Economics Department, School of Business Administration, King Faisal University, Alhofouf, Saudi ArabiaFollow
Abdullah S. Al Shammre, Economics Department, Business School, King Faisal University, Alahsa, Saudi ArabiaFollow
Nagwa A. A. Abdelkawy, Economics Department, School of Business Administration, King Faisal University, Alhofouf, Saudi ArabiaFollow
Amani M. A. Mohammed, Business Administration Department, Applied College, King Faisal University, Alhofouf, Saudi ArabiaFollow
Maged A. Hassan, Economics Department, The Institute October High of Economics, Culture and Science City, 6 October, EgyptFollow
Abdelhameed A. Montash, Accounting Department, School of Business Administration, King Faisal University, Alhofouf, Saudi ArabiaFollow

Author Country (or Countries)

Saudi Arabia

Abstract

In this paper, we examine the causal relationship between renewable energy and economic growth in Saudi Arabia from 1990 to 2021. Our hypothesis suggests a bidirectional causal link between economic growth and the adoption of renewable energy, emphasizing the significant impact of transitioning to renewables on Saudi Arabias economic growth. The findings indicate a unidirectional causal relationship in the short and long term, with real GDP influencing actual investment spending and the labor force influencing real GDP. Moreover, there is a unidirectional causal relationship between real GDP to renewable energy, suggesting that real GDP drives the development of renewable energy in both the short and long term.

Digital Object Identifier (DOI)

https://dx.doi.org/10.18576/jsap/130213

Recommended Citation

I. A. Elkalawy, Saad; S. Al Shammre, Abdullah; A. A. Abdelkawy, Nagwa; M. A. Mohammed, Amani; A. Hassan, Maged; and A. Montash, Abdelhameed (2024) "Renewable Energy and Economic Growth in Saudi Arabia: A Test of Interrelationship," Journal of Statistics Applications & Probability: Vol. 13: Iss. 2, Article 15.
DOI: https://dx.doi.org/10.18576/jsap/130213
Available at: https://digitalcommons.aaru.edu.jo/jsap/vol13/iss2/15