The Significance of Governance Indicators to Achieve Carbon Neutrality: A New Insight of Life Expectancy

Abstract

This paper investigates the impact of life expectancy on carbon emission, in Saudi Arabia. Additionally, we examined the role of governance to achieve carbon neutrality status. We used the novel dynamic ARDL technique for estimations. This is one of the pioneer studies that analyze the role of life expectancy to control carbon emissions. The coefficients of life expectancy, education, and political stability are significantly negative. On contrary, governance effectiveness is an obstacle to achieving carbon neutrality. Empirical findings of life expectancy and governance effectiveness are quite surprising. In terms of Vision 2030 estimations, the coefficient of corruption control is significant and negative, indicating that the Saudi government has prioritized corruption control. While governance effectiveness remains positive, the Saudi government still requires governance reforms in order to achieve carbon neutrality goals.