The role of governance indicators to minimize the carbon emission: a study of Saudi Arabia

Abstract

PurposeThe main purpose of the study is to examine the impact of governance indicators, to control carbon emission, through the environmental awareness and pro-environmental behavior. Previously, researchers have attempted to explore the factors of carbon emission and report the number of solutions. Despite that, the environmental degradation process is surging.Design/methodology/approachThe study uses quantile regressions (QR) techniques by using the yearly data of Saudi Arabia for the period of 1970–2018. QR reports the results at different quantiles which is useful for conclusion.FindingsThe empirical results have confirmed the significant and negative coefficients of governance indicators, mentioning that governance effectiveness and regulatory quality leads to reduction of carbon emission, in the case of Saudi Arabia.Practical implicationsThe Saudi Government has to improve governance effectiveness to eradicate environmental hazards. However, it is necessary to enhance the quality of regulations regarding formation as well as the implementation of policies to confirm that firms and public follow the pro-environmental behavior.Originality/valueThe study is the pioneer, which addresses the governance parameters, governance effectiveness and regulatory quality to minimize the carbon emission for Saudi Arabia.