Empirical Analysis of Non-Renewable Energy, Renewable Energy, Foreign Direct Investment, and Economic Growth on Environmental Sustainability

The study mainly focuses on checking the dynamic impact of nonrenewable energy, renewable energy, foreign direct investment, and economic growth on environmental sustainability by the newly developed bootstrap autoregressive distributed lag (ARDL) testing technique. ARDL being a dynamic model incorporates the capacity of giving both short and long runs series by the help of the first and second differences of the series. To this effect, the annual data covers a timeframe from the year 2000 up to 2023. On the other hand, Granger's causality analysis indicates that there is a one-way causative relationship between consumption of renewable and non-re renewable energies and environmental sustainability in relation to GDP in the United Arab Emirates. Moreover, the ARDL findings revealed that the coefficients of GDP showed positive values, whereas the quadratic GDP exhibited negative values. These findings support the validity of the EKC theory in the UAE, the negative relationship between FDI and environmental sustainability. Moreover, policymakers in the UAE must dedicate substantial financial resources towards the advancement of sustainable energy sources, while concurrently decreasing dependence on non-renewable fuels.

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Publication Details

Journal
International Journal of Energy Economics and Policy
Published
2025-04-21
DOI
https://doi.org/10.32479/ijeep.18575
Primary Topic
Energy, Environment, Economic Growth
Type
article
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article

Empirical Analysis of Non-Renewable Energy, Renewable Energy, Foreign Direct Investment, and Economic Growth on Environmental Sustainability

Aws Al-Okaily, Tawfiq Taleb Tawfiq, Omar Al-Kasasbeh, Nashat Ali Almasria et al.
International Journal of Energy Economics and Policy
Energy, Environment, Economic Growth
article

Empirical Analysis of Non-Renewable Energy, Renewable Energy, Foreign Direct Investment, and Economic Growth on Environmental Sustainability

Aws Al-Okaily, Tawfiq Taleb Tawfiq, Omar Al-Kasasbeh, Nashat Ali Almasria, Hala Tawaha, Mohannad Almajali
article en

Abstract

The study mainly focuses on checking the dynamic impact of nonrenewable energy, renewable energy, foreign direct investment, and economic growth on environmental sustainability by the newly developed bootstrap autoregressive distributed lag (ARDL) testing technique. ARDL being a dynamic model incorporates the capacity of giving both short and long runs series by the help of the first and second differences of the series. To this effect, the annual data covers a timeframe from the year 2000 up to 2023. On the other hand, Granger's causality analysis indicates that there is a one-way causative relationship between consumption of renewable and non-re renewable energies and environmental sustainability in relation to GDP in the United Arab Emirates. Moreover, the ARDL findings revealed that the coefficients of GDP showed positive values, whereas the quadratic GDP exhibited negative values. These findings support the validity of the EKC theory in the UAE, the negative relationship between FDI and environmental sustainability. Moreover, policymakers in the UAE must dedicate substantial financial resources towards the advancement of sustainable energy sources, while concurrently decreasing dependence on non-renewable fuels.

International Journal of Energy Economics and PolicyVol. 15(3)
Amman Arab University (JO), University of New Orleans (US), Shaqra University (SA), Jadara University (JO), Brescia University (US)
Openalex Percentile: Top 88%
Energy, Environment, Economic Growth
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