Urbanisation and human capital shape Saudi Arabia’s energy–emissions nexus through direct rather than moderating channels

We revisit the energy-growth-environment nexus in Saudi Arabia (1970-2023) and ask, for the first time in a single-country time-series setting, whether urbanisation and human capital moderate the energy-CO₂ elasticity. Within an augmented STIRPAT framework, we test moderation using orthogonalised interaction terms that remove mechanical multicollinearity, and we estimate the relationship with ARDL bounds testing, NARDL decomposition, Toda-Yamamoto causality, and FMOLS/DOLS/CCR. A stable long-run relationship is confirmed (F = 6.89; ECT = - 0.67). Energy consumption is the dominant driver of emissions (elasticity ≈ 0.94), while urbanisation and trade openness act as direct mitigating determinants. Crucially, the orthogonalised energy-urbanisation and energy-human-capital interactions are not statistically significant: once structural breaks and core covariates are included, urbanisation and human capital operate through direct channels rather than by bending the energy-emissions elasticity - a substantive null that contrasts with cross-country studies and constrains policy modelling. Causality is bidirectional between emissions and growth, and trade openness causes both emissions and energy use; the NARDL provides insufficient evidence to detect asymmetry, so the parsimonious linear specification is preferred for inference. For Saudi Arabia's net-zero-2060 target, these results imply that decarbonising the energy mix is indispensable, while Vision 2030's urban and human-capital investments yield direct emissions benefits.

Authors

Institutions

Publication Details

Journal
Scientific Reports
Published
2026-07-18
DOI
https://doi.org/10.1038/s41598-026-61213-2
Primary Topic
Water-Energy-Food Nexus Studies
Type
article
Field-Weighted Citation Impact
0.00

Funders

Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Urbanisation and human capital shape Saudi Arabia’s energy–emissions nexus through direct rather than moderating channels

Sahar Abdo Mohamed Elsayed, Uzma Khan, Aarif Mohammad Khan
Scientific Reports
Water-Energy-Food Nexus Studies
article

Urbanisation and human capital shape Saudi Arabia’s energy–emissions nexus through direct rather than moderating channels

Sahar Abdo Mohamed Elsayed, Uzma Khan, Aarif Mohammad Khan
article en

Abstract

We revisit the energy-growth-environment nexus in Saudi Arabia (1970-2023) and ask, for the first time in a single-country time-series setting, whether urbanisation and human capital moderate the energy-CO₂ elasticity. Within an augmented STIRPAT framework, we test moderation using orthogonalised interaction terms that remove mechanical multicollinearity, and we estimate the relationship with ARDL bounds testing, NARDL decomposition, Toda-Yamamoto causality, and FMOLS/DOLS/CCR. A stable long-run relationship is confirmed (F = 6.89; ECT = - 0.67). Energy consumption is the dominant driver of emissions (elasticity ≈ 0.94), while urbanisation and trade openness act as direct mitigating determinants. Crucially, the orthogonalised energy-urbanisation and energy-human-capital interactions are not statistically significant: once structural breaks and core covariates are included, urbanisation and human capital operate through direct channels rather than by bending the energy-emissions elasticity - a substantive null that contrasts with cross-country studies and constrains policy modelling. Causality is bidirectional between emissions and growth, and trade openness causes both emissions and energy use; the NARDL provides insufficient evidence to detect asymmetry, so the parsimonious linear specification is preferred for inference. For Saudi Arabia's net-zero-2060 target, these results imply that decarbonising the energy mix is indispensable, while Vision 2030's urban and human-capital investments yield direct emissions benefits.

Scientific Reports
Prince Sattam Bin Abdulaziz University (SA), Aligarh Muslim University (IN)
Prince Sattam bin Abdulaziz University
Sustainable cities and communities
Openalex Percentile: Top 16%
Water-Energy-Food Nexus Studies
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.