Investigation of the N-shaped environmental Kuznets curve for COVID-19 mitigation in the KSA

Abstract

Climate change mitigation has led to a recent question regarding many policymakers and sustainable development goals (SDGs) of the Kingdom of Saudi Arabia (KSA) for Vision 2030. In 2019 and 2020, COVID-19 mitigation was the only issue the world raised questions about; for example, the KSA and the rest of the world are working diligently to meet COVID-19 mitigation targets. To assess policy supervision in terms of the ability to achieve COVID-19 targets, this survey examines the operators necessary to achieve the SDGs in regard to improving COVID-19 mitigation and increasing economic growth. In particular, we examine COVID-19 mitigation under the setting of an N-shaped environmental Kuznets curve (N-shaped EKC) in the KSA. To identify the COVID-19 shock in the KSA, the effects of oil price and oil rent on CO 2 emissions are examined. The results of the autoregressive distributed lag (ARDL) and non-autoregressive distributed lag (NARDL) bound testing approach indicate that due to the COVID-19 pandemic, the inverted Nshaped EKC hypothesis is validated in the long term. Empirically, we find that oil price strengthens the relationship of level, quadratic and cubic of economic growth and environmental quality while oil rent weakens this relationship. Additionally, the long-term incidences of positive shocks on oil price in the presence of COVID-19 outbreak are not similar to the negative shock to CO 2 emissions, implying the existence of asymmetric impacts on carbon dioxide emissions in long-term forms. Our research implies that an oil price shock could be judicious for macro guidance of the economy in the KSA. Our findings are helpful for policymakers and investors in terms of their settlement planning because they can be used to evaluate prospective courses of economic profitability under the COVID-19 shock.

Environmental Effects of China’s Overseas Direct Investment in South Asia

“…The financial sector development increased carbon emissions in emerging countries so the research studies conducted by Jiang and Ma (2019) support our finding in case of India. When considering individual countries Table 5, reports that EKC hypothesis the inverted U-shape curve exist in India and these finding are consistent with Sinha and Bhatt (2016) and Rani and Kumar (2019) and Ritu and Naresh (2019) whereas, Pakistan and Nepal shows U-shape curve while Bangladesh manifest N-shape curve and the research finding of Choi et al (2010), Sirag et al (2018), Lee and Chen (2021), Uzair Ali et al (2020), and Aljadani et al (2021) proved the various temporal pattern of EKC hypothesis in their research studies.…”

Testing the Environmental Kuznets Curve Hypotheses in Chinese Provinces: A Nexus between Regional Government Expenditures and Environmental Quality

“…Moreover, the first-difference GMM method can solve the endogeneity problem due to bilateral causality between GDP per capita and government spending [ 42 ].The impacts of government expenditure on pollutant emissions are estimated using the environmental Kuznets curve [ 43 ]. The EKC hypothesis explains an inverted N-shaped relationship between economic growth and environmental degradation; environmental pressure increases in the early stages of economic growth due to the increased release of pollutants and the extensive and intensive exploitation of natural resources associated with the greater use of production resources, and the adoption of certain production technologies for the growing economic activities, up to a certain level, as income rises [ 44 , 45 ]. After that, it decreases, probably because of the growing public awareness and concern about environmental degradation and the research and development activities being oriented more toward the concept of the green economy when GDPP at a high level.…”

Nexus of COVID-19 and carbon prices in the EU emission trading system: evidence from multifractal and the wavelet coherence approaches

“…By investigating the literature on the COVID-19 pandemic and its interconnections with economic factors (e.g., financial assets, macroeconomic variables), several studies took place in this area and applied different approaches for analyzing the issue. Regrading, we distinguished and classified the studies on three distinct categories: (I) studies that focused on the issue of (sustainable) energy transition in the era of COVID-19 contagious (Aktar et al 2021;Hosseini 2020;Jiang et al 2021;Klenert et al 2020;Kuzemko et al 2020), (II) studies that have dealt with the subject of COVID-19 and environmental issues (Aljadani et al 2021;Andreoni 2021;Hauser et al 2021;Meles et al 2020;Sikarwar et al 2021;Smith et al 2021), and (III) two different kinds of studies that implemented the analytical methods including the studies that applied the multifractal analysis (Choi 2021;Mensi et al 2021;Naeem et al 2021) and the wavelet (coherence) approach (Chien et al 2021;Goodell and Goutte 2021;Karamti and Belhassine 2021;Sharma et al 2021). In what follows, we attempted to examine the ideas offered in all of the mentioned studies.…”