Nizar Raissi

The paper investigates the interplay between clean energy, environmental pollution reduction, and economic growth in the Gulf Cooperation Council (GCC) countries from 1980 to 2019, utilizing the autoregressive distributed lag (ARDL) method. The study underscores the global transition towards cleaner energy sources and its implications for the region. In assessing the determinants of economic growth, the findings reveal a positive and significant short‐ and long‐term impact of energy production, with energy consumption exhibiting a positive and significant effect solely in the long term. The absence of a confirmed relationship in the short term is notable. Causality tests demonstrate a significant link from both energy consumption types to environmental pollution, alongside causal relationships from urbanization, energy production, and consumption to economic growth. Moreover, the results include the pivotal role of energy production in driving GDP growth, caution in short‐term energy consumption effects, and significant causal links between energy consumption and environmental pollution. The recommendations to incentivize sustainable energy production, engage in long‐term energy consumption planning, and adopt integrated urbanization policies provide actionable insights for policymakers. These suggestions are aimed at guiding the GCC countries in balancing the pursuit of economic growth with environmental sustainability—a delicate equilibrium that necessitates careful consideration of various factors.

A major challenge facing humans in the 21st century is how to strike a balance between the mitigation of environmental degradation and the achievement of sustainable economic growth. On this note, this investigation applies an autoregressive distributed lag (ARDL) methodology to a panel data of 28 European Union (EU-28) countries over the period 2000-2020. The study confirms the existence of positive and significant long-run nexus among environmental sustainability, renewable energy consumption and economic growth in the EU-28 countries. In addition, empirical results indicate that real gross fixed capital formation, carbon emissions and other environmental factors are principal determinants of long-run growth in the EU. Using Dumitrescu and Hurlin (2012) Granger non-causality in heterogeneous panel, results show long-run bidirectional causal relationships among renewable energy consumption, economic growth and other growth determinants. Based on these results, infer that the exploitation of renewable energy sources in the EU-28 countries is a reliable pathway toward environmental pollution mitigation. This indicates that achieving the sustainable development goals (SDGs) by the year 2030 through renewable energy consumption and carbon emission mitigation is very much achievable in the EU-28 countries, and should also be adopted by all countries as an effective global policy.