Foreign direct investment, trade openness, energy consumption and CO&lt;SUB align="right"&gt;2 emission: evidence from Iran and Saudi Arabia

Purpose Saudi Arabia is the main destination of religious tourism, as it has many spiritual places. With the passage of years, the figures for pilgrim visits are increasing, which is contributing to the economic growth of the Kingdom of Saudi Arabia (KSA). However, pilgrims’ visits can create strong opportunity costs in the form of environmental degradation. Owing to these notions, this study aims to discover the impact of religious tourism on the quality of the natural environment of Saudi Arabia. Design/methodology/approach This study develops the empirical relationship between the variables by sampling the data from 35 years ranging from 1986 to 2020. The regression among variables was checked by using fully modified ordinary least square and dynamic ordinary least square models. Findings This analysis proves that religious tourism has a direct impact on the environmental degradation of KSA. The unceasing visits of pilgrims accelerate various economic operations and activities, e.g. assimilation and digestion of industrial products, that necessarily hamper the environmental quality. In addition, this analysis indicates a negative impact on financial development, foreign investment and renewable energy consumption while the positive impact of fossil fuels assimilation and economic expansion on the secretion of CO2. The statistical findings are robust and verify the pollution halo hypothesis while rejecting the Environmental Kuznets Curve model in this region. Research limitations/implications This analysis recommends restructuring the policies on hajj and Umrah visits. KSA Government should ensure green consumption by pilgrims. The limitation on pilgrims’ visits and the introduction of quotas are alternative policies to impede the pollution in this region. Originality/value By controlling the routine determinants, this study offers innovative thoughts regarding the consequences of religious tourism on environmental quality.

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Impact of religious tourism on the economic development, energy consumption and environmental degradation: evidence from the Kingdom of Saudi Arabia

Tabash

Farooq

Refae

et al. 2023

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How economic growth, sustainable energy and carbon emission impact each other? New insights from India using ARDL approach

et al. 2023

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This study investigates the association among economic growth, sustainable energy consumption and carbon emission with additional variables including fossil fuel energy consumption, natural gas and trade openness. The annual time‐series data from 1972 to 2019 is analysed using an auto‐regressive distributive lag model. Moreover, the novelty and robustness of the model are verified using dynamic ordinary least squares, and fully modified ordinary least squares. The results specify that except carbon emission model equation, there is co‐integration exists among variables. In terms of the outcomes in the long term, the consumption of fossil fuels has a notable impact on economic growth and natural gas, whereas the consumption of sustainable energy has a detrimental effect on economic growth. Interestingly, in the short run, sustainable energy consumption positively links with trade openness and economic growth. Furthermore, the VECM‐based Granger Causality detects a one‐way causal linkage of fossil fuel consumption, trade openness, carbon emissions and natural gas with economic growth. A bidirectional causality exists from carbon emission to fossil fuel consumption, suggesting a feedback hypothesis. The study provides a comprehensive understanding of the underlying variables. The policymakers can make decisions for the efficient functioning of energy markets, enhanced production of energy‐from‐waste material and environmental enforcement in India related to air pollution should be strengthened.

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The Interplay Between Economic Diversification, Foreign Direct Investment, and Climate Change in Saudi Arabia

Louail,

Riache,

Alanazi

2024

Civil and Environmental Engineering

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This study examines the short-run and long-run repercussions of export diversification and foreign direct investment on climate change and greenhouse gas emissions in Saudi Arabia. In addition, the specification includes gross domestic product, total energy use, and urbanization as control variables. The outcomes of the study are as follows. First, the ARDL model provides empirical evidence supporting long-run cointegrating relationships among the variables. Second, export diversification, gross domestic product, and urbanization increase greenhouse gas emissions in the short-run and long-run. Nevertheless, the long-run adverse consequences of these variables tend to be greater than their short-run effects. Third, foreign direct investment inflows reduce greenhouse gas emissions and enhance short- and long-run environmental conditions. Finally, energy use has no significant impact on environmental conditions. These conclusions are robust against many empirical issues, including autocorrelation, heteroskedasticity, misspecification, and normality. The cumulative sum of recursive residuals and cumulative sum of recursive residuals of squares plots confirm the stability of long-run parameters and the validity of the ARDL estimations. The findings offer significant perspectives on measures that should be taken to preserve the environment.

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Foreign direct investment, trade openness, energy consumption and CO<SUB align="right">2 emission: evidence from Iran and Saudi Arabia

Cited by 4 publications

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Impact of religious tourism on the economic development, energy consumption and environmental degradation: evidence from the Kingdom of Saudi Arabia

Impact of religious tourism on the economic development, energy consumption and environmental degradation: evidence from the Kingdom of Saudi Arabia

How economic growth, sustainable energy and carbon emission impact each other? New insights from India using ARDL approach

The Interplay Between Economic Diversification, Foreign Direct Investment, and Climate Change in Saudi Arabia

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