The purpose of this paper is to investigate the causal relationship among economic growth, carbon dioxide (CO 2 ) emissions, energy consumption, and energy production from oil and gas during 1990-2017. By vector autoregressive models and Granger causality Wald tests, this study suggests that there is bidirectional relationship between: Economic growth and energy consumption, economic growth and CO 2 emissions, and electricity production from gas and CO 2 emissions. Moreover, there is a unidirectional causality runs from energy consumption and CO 2 emission to growth of electricity production from gas, and from energy production from oil to growth of CO 2 emissions. This result confirms that energy consumption is a critical input of production and plays as a complement to the important factors of labor, capital, and land in Saudi Arabia.
This study aims to find the long run and short run equilibrium relationships between stock market values (MV) and macroeconomic variables (GDP, foreign direct investment (FDI), inflation rate (INF), and interest rate (IR)) using annual time series data for the 1993-2018 period. The results indicate that all macroeconomic variables are stationary in the first difference and co-integrated with MV. The results also indicate that there is a long run relationship between MV and all macroeconomic variables and between GDP and all other variables. But there is one short run relationship between stock market values and all variables in lagged. The results of this study suggest that Saudi Arabian policy makers should pay attention to the effects of monetary policies and economic activity measurement on the stock market index.
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