Renewable Energy Firms In Transition: Environmental Returns And Policy Synergies  Under Saudi Vision 2030

Mohammed Alharithi; Chokri Zehri

doi:10.24057/2071-9388-2025-4028

Renewable Energy Firms In Transition: Environmental Returns And Policy Synergies Under Saudi Vision 2030

Mohammed Alharithi, Chokri Zehri

https://doi.org/10.24057/2071-9388-2025-4028

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Abstract

We examine how renewable energy strategies under Saudi Arabia’s Vision 2030 drive environmental sustainability in fossil fuel-dependent economies. The study analysed data from 42 firms (2012–2023) using the Generalised Method of Moments (GMM) and Impulse Response Functions (IRFs). Our findings indicate that a 1% increase in clean energy investment results in a 6.3–8.1% reduction in climate emissions and a 10.2–16.3% decrease in water challenges. A 1% increase in clean energy use lowers emissions by 5.4–7.6% and water stress by 3.2–11.4%. Policy integration amplifies outcomes. Oil-sector firms leverage scale for renewable projects while non-oil sectors face pressures from oil price volatility. IRFs confirm sustained environmental gains from renewable adoption. The study advocates integrated policies, including subsidy reallocation, lowwater renewables, and oil-sector engagement, to align economic diversification with sustainability. It also emphasises the need to address agricultural water inefficiencies and industrial energy intensity.

Keywords

environment, renewable, gas emission, firms, Saudi Arabia, Vision 2030

About the Authors

Mohammed Alharithi

Department of Business Administration, College of Business Administration in Hawtat Bani Tamim, Prince Sattam Bin Abdulaziz University
Saudi Arabia

Bandar St, Al Hulwah, 16524, Al-Kharj

Chokri Zehri

Department of Finance, College of Business Administration in Hawtat Bani Tamim, Prince Sattam Bin Abdulaziz University
Saudi Arabia

Bandar St, Al Hulwah, 16524, Al-Kharj

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Review

For citations:

Alharithi M., Zehri Ch. Renewable Energy Firms In Transition: Environmental Returns And Policy Synergies Under Saudi Vision 2030. GEOGRAPHY, ENVIRONMENT, SUSTAINABILITY. 2025;18(4):48-60. https://doi.org/10.24057/2071-9388-2025-4028

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