Driving Factors of Energy Consumption and Carbon Emissions and Their Impacts on Sustainable Development in Saudi Arabia

Abstract

The author is thankful to the Deanship of Scientific Research at Najran University for funding this work through grant research code NU/SHED/15/064 (Sponsoring information). Abstract This study identifies the effects of driving factors and measuring their corresponding contribution shares in energy consumption and CO2 emissions in Saudi Arabia by employing the factor decomposition model and the Stochastic Impacts by Regression on Population, Affluence, and Technology model. The empirical results indicate that the effects of population, GDP per capita and carbon intensity on CO2 emissions are positive and significant. The results show that technological progress is the main driving factor that leads to increase energy use. Besides, increasing energy efficiency in energy consumption and investment in new technologies and renewable energies should be a good strategy to attain a sustainable development in Saudi Arabia. Keywords: Energy Consumption, Carbon Emissions, Factor Decomposition Model, STIRPAT Model, Saudi Arabi