Energy consumption, economic growth and pollution in Saudi Arabia

Economic growth is very basic need of any economy but its environmental effects should not be ignored. We investigate the environmental effects of economic growth and energy consumption of Saudi Arabia. We use data of a period 1968-2014 and cointegration test. We corroborate the long- and short-run relationships. We find that economic growth and energy consumption contribute in CO 2 emissions in both long- and short-run. It means that increasing economic growth of the Kingdom has social cost on the economy in terms of pollution emissions. Based on findings, we recommend to use the alternative renewable sources of energy consumption to avoid the pollution effects of growth in Saudi Arabia.

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