The significance of renewable energy, globalization, and agriculture on sustainable economic growth and green environment: Metaphorically, a two‐sided blade

Abstract

AbstractThe study investigates the effects of renewable energy, globalization, and agriculture on long‐term economic progress and the environment. Using a data set of Gulf Council of Countries (GCC) from 1980 to 2019, the study used panel fully modified ordinary least squares and dynamic ordinary least squares techniques. Panel data analysis results indicate the relevance of globalization, foreign investment, and trade in enhancing long‐term economic growth. Capital and globalization are the fundamental sources of environmental degradation, whereas renewable energy and trade are essential variables for mitigating environmental externalities. Agriculture has no effect on economic advancement or environmental quality in certain countries. In cross country analysis, the United Arab Emirates, Oman, and Saudi Arabia are found to be significant but negatively related to economic growth. Capital formation and globalization have a substantial positive impact on the environment for all countries. Renewable energy and agriculture have been found to be insignificantly connected to all GCC nations' economic growth. The study urges the policymakers to consider the current scenario of Gulf countries, as they are on the cusp of a double‐edged sword. The findings have numerous policy ramifications, notably for GCC countries.