Implication of blue economy and renewable energy on CO2 emissions in Saudi Arabia: evidence from ARDL approach

Saudi Arabia is spearheading the blue economy, facilitating economic diversification and sustainable growth through the optimal utilization of marine resources. This emphasis aligns with the Kingdom's Vision 2030 initiative, which aims to establish a dynamic and diversified economy. However, if this effort is not conducted sustainably, it may result in an increased emission of carbon dioxide into the environment. This study estimates the short- and long-term effects using an ARDL model for the period 1990–2022. Results indicate that, in the near term, the growth of aquaculture production will diminish carbon dioxide emissions due to the implementation of environmentally friendly technological technologies; however, the long-term effects may be more complex and could lead to an increase in carbon emissions. Conversely, increased utilization of renewable energies significantly reduces CO2 emissions in both the short and long term. In contrast, increasing energy density leads to increased CO2 emissions, which has been mitigated through improved energy utilization. The Blue Economy helps reduce emissions in Saudi Arabia more directly by using renewable energy, protecting carbon sinks, preventing emissions from damaged ecosystems, and cutting down on reliance on fossil-fuel-heavy industries.