International Trade, Technological Innovation and Renewable Energy Consumption in Saudi Arabia: An Empirical Analysis Using the ARDL Model

Abstract

This study examines the impact of international trade and technological innovation on renewable energy consumption in Saudi Arabia. Using the following key variables: renewable energy, international trade, technological innovation, non-renewable energy, and CO2 emissions, the study applies the ARDL (Auto Regressive Distributed Lag) model over a long period from 1992 to 2023. The results show that international trade has a positive effect but with a one-year lag. In the short term, renewable energy consumption is primarily influenced by its lagged values. In the long term, technological innovation plays a significant positive role in promoting the increase in renewable energy consumption. These results highlight the importance of policies that encourage technological innovation and international trade to boost renewable energy consumption.