The Nexus Between Intensive Land Utilization, Energy Efficiency, and Economic Growth: Application of Advanced Econometric Approaches

Abstract

The aim of this study is to analyze Saudi Arabia's economic transformation, emphasizing the period from 1990 to 2022 and considering the implementation of Vision 2030. Land use, energy consumption, and economic growth are evaluated through the use of a nonlinear ARDL model. Based on the findings, the Saudi economy has shifted from relieving heavily on oil revenues to diversification and sustainability. The economy has been positively impacted by sustainable land use practices and a reduction in nonrenewable energy consumption since Vision 2030, which highlights the early successes of diversification efforts. The study demonstrates a strong link between energy efficiency enhancements and economic performance, highlighting the economic benefits of ongoing energy reforms. However, the Saudi economy's sensitivity to oil prices persists, albeit with a diminished impact post-Vision 2030. The research emphasizes the importance of strategic land management and investment in energy-efficient technologies to foster a resilient and diversified economic structure.