Role of Rule of Law in the Renewal Energy Transition in Saudi Arabia: A Review and Analysis

Abstract

The effectiveness of the rule of law and general institutional quality are critical for encouraging Renewable Energy Consumption (REC), which facilitates the Renewable Energy Transition (RET). This concept is empirically tested in Saudi Arabia, using data spanning 1996–2022. Our findings show that there are substantial long- and short-term correlations within the model, demonstrating a positive association between RET and all evaluated variables of institutional quality. The long-term favorable impact of the rule of law is also remarkable, implying that reforms in legal and regulatory frameworks could result in an instant boost in RET. Similarly, control of corruption, as well as voice and accountability, have positive long- and short-term impacts. However, our data shows that economic growth has no substantial impact on RET. As a result, we urge that the Saudi economy emphasize efforts to improve institutional quality as a means of advancing the Renewable Energy Transition agenda. Strengthening the rule of law, reducing corruption, and increasing voice and accountability procedures can all contribute to the development of renewable energy in Saudi Arabia, propelling the country toward a more sustainable energy future. Received: 14 February 2024 / Accepted: 30 April 2024 / Published: 02 July 2024