Exploring the nexus between technological innovations and environmental efficiency in the Gulf Cooperation Council countries

Purpose This study aims to assess environmental efficiency in the Gulf Cooperation Council (GCC) countries and to examine the effect of technological innovations on this efficiency. Design/methodology/approach An empirical analysis of 6 countries is conducted for the period from 1990 to 2023, employing panel regression methods to assess environmental efficiency and to examine the effect of technological innovations on this efficiency. Findings The findings indicate that the level of environmental efficiency varies among GCC countries, with Saudi Arabia and the United Arab Emirates having the highest levels. Overall, environmental efficiency improved across all panels during the assessed period. The results suggest that factors such as technological innovation, gross domestic product per capita, foreign direct investment, and the medium- and high-tech industries positively influence environmental efficiency and contribute to its improvement. Originality/value This study introduces a new context by focusing on the Gulf countries, where previous research has not evaluated environmental efficiency or analyzed the impact of technological innovations on environmental efficiency in this region. The study provides valuable insights for GCC economies as they commit to the Paris Agreement. It suggests a series of policy implications to enhance technological innovations while simultaneously promoting economic growth.