<abstract xmlns="http://www.w3.org/1999/xhtml">

<sec><h3>Background</h3>
<p>Energy production plays a major role in the Saudi Arabian economy, but energy production can lead to an increase in environmental pollution.</p>
</sec>
<sec><h3>Objectives:</h3><p>This study investigated the impact of energy production and trade openness on Saudi Arabia’s economic growth and environmental pollution using annual data from 1970 to 2020.</p>
</sec>
<sec><h3>Methods/Approach:</h3><p>The fully modified ordinary least squares (FMOLS) and the dynamic ordinary least squares (DOLS) methods were employed to develop two models, including an economic growth model and an environmental Sustainability or pollution model.</p>
</sec>
<sec><h3>Results:</h3><p>The results of the two tests ensured that both expanding trade openness and increasing energy production led to faster economic growth. Nevertheless, the expansion of trade openness and energy production also led to environmental pollution; hence, the increase in energy production did not support sustainable development.</p>
</sec>
<sec><h3>Conclusions:</h3><p>Thus, policymakers should develop a green economy strategy to reduce the use of fossil fuels and increase renewable energy in energy production to reduce environmental pollution. Moreover, the Saudi Arabian government should highly promote investment in renewable energy production through trade openness.</p>
</sec>
</abstract>

Background
Energy production plays a major role in the Saudi Arabian economy, but energy production can lead to an increase in environmental pollution.

Objectives:This study investigated the impact of energy production and trade openness on Saudi Arabia’s economic growth and environmental pollution using annual data from 1970 to 2020.

Methods/Approach:The fully modified ordinary least squares (FMOLS) and the dynamic ordinary least squares (DOLS) methods were employed to develop two models, including an economic growth model and an environmental Sustainability or pollution model.

Results:The results of the two tests ensured that both expanding trade openness and increasing energy production led to faster economic growth. Nevertheless, the expansion of trade openness and energy production also led to environmental pollution; hence, the increase in energy production did not support sustainable development.

Conclusions:Thus, policymakers should develop a green economy strategy to reduce the use of fossil fuels and increase renewable energy in energy production to reduce environmental pollution. Moreover, the Saudi Arabian government should highly promote investment in renewable energy production through trade openness.

Economic and Environmental Sustainability through Trade Openness and Energy Production

Business Systems Research Journal

This work is licensed under the Creative Commons Attribution 4.0 International License.

Background
Energy production plays a major role in the Saudi Arabian economy, but energy production can lead to an increase in environmental...

Economic and Environmental Sustainability through Trade Openness and Energy Production

Published Online: Apr 25, 2024

Page range: 102 - 123

Received: Oct 08, 2022

Accepted: Nov 18, 2023

DOI: https://doi.org/10.2478/bsrj-2023-0014

Keywords
pollution, growth, Saudi Arabia, FMOLS, DOLS

© 2023 Tomader Elhassan, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Economic and Environmental Sustainability through Trade Openness and Energy Production

Published Online: Apr 25, 2024

Page range: 102 - 123

Received: Oct 08, 2022

Accepted: Nov 18, 2023

DOI: https://doi.org/10.2478/bsrj-2023-0014

Keywordspollution, growth, Saudi Arabia, FMOLS, DOLS

© 2023 Tomader Elhassan, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
pollution, growth, Saudi Arabia, FMOLS, DOLS