Impact of GDP growth on the ecological footprint: Theoretical and empirical evidence from Saudi Arabia

Abstract

This study aims to examine the hypothesis of the environmental Kuznets curve (EKC) within the context of Saudi Arabia from 1981 to 2017. The ARDL approach is employed to estimate the relationship between ecological footprint, energy consumption, trade openness, and GDP per capita. The findings confirm that GDP per capita, trade openness, and energy consumption positively impact the ecological footprint, and reveal the presence of a feedback relationship between GDP per capita and energy consumption. The results demonstrate the empirical validity of the EKC, indicating an inverted U-shaped relationship between GDP and ecological footprint. Consequently, as Saudi Arabia's level of economic growth advances, its environmental conditions tend to improve. To further reduce the ecological footprint, Saudi Arabia is urged to substantially increase its utilization of renewable energy sources and implement a more efficient energy policy.