Trade and Environment Nexus in Saudi Arabia: An Environmental Kuznets Curve Hypothesis

Authors

Abstract

This research explores the effects of trade and income level on the Carbon Dioxide Emissions (CDE) in Saudi Arabia by using a period 1970-2016. Unit root and cointegration tests have been utilized for data analysis. Unit root test confirms the level of integration as one and cointegration has been found in our estimated model through bound testing procedure. In the long run, income is found responsible for increasing CDE but its square term is showing a negative impact on CDE. Therefore, this study has inveterate the presence of Environmental Kuznets Curve (EKC) hypothesis. Further, trade has negative impact on CDE. Therefore, trade has been remained helpful in reducing pollution levels in Saudi Arabia. The income, its square and trade have same directions of relationships in short run as in long run. Based on findings, this study recommends the Saudi government to liberalize trade policy to protect environment.       Keywords: Carbon Dioxide Emissions, Trade, Environmental Kuznets CurveJEL Classifications:  Q53, O49, Q56 

Downloads

Download data is not yet available.

Author Biographies

Haider Mahmood, Prince Sattam Bin Abdulaziz university, Alkharj, Saudi Arabia.

Assistant Professor, Department of Finance, College of Business Administration

Tarek Tawfik Yousef Alkhateeb, Assistant Professor, Department of Marketing, College of Business Administration and Professor, Kafr Elsheikh University, Egypt.

Assistant Professor, Department of Marketing, College of Business Administration and Professor, Kafr Elsheikh University, Egypt.

Downloads

Published

2017-11-01

How to Cite

Mahmood, H., & Alkhateeb, T. T. Y. (2017). Trade and Environment Nexus in Saudi Arabia: An Environmental Kuznets Curve Hypothesis. International Journal of Energy Economics and Policy, 7(5), 291–295. Retrieved from https://econjournals.com./index.php/ijeep/article/view/5333

Issue

Vol. 7 No. 5 (2017)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.