The impact of globalization on environmental sustainability in Saudi Arabia

This study examines the impact of globalization on environmental sustainability in Saudi Arabia, motivated by its economic diversification under Vision 2030 and commitment to global environmental goals. Using annual data (1970–2021) and the Auto Regressive Distributed Lag (ARDL) model, the study captures short- and long-run effects of globalization's economic, social, and political dimensions on CO2 emissions. Results indicate that a 1 % increase in trade and social globalization raises emissions by 0.62 % and 0.38 %, respectively, while political globalization reduces emissions by 0.29 % through international policy alignment. Financial globalization also aids sustainability, with a 0.47 % reduction in emissions per 1 % increase in financial openness, highlighting the role of green investments and technology transfers. These findings emphasize the need for targeted policies that regulate trade-driven emissions while leveraging political and financial globalization for sustainability. Policymakers should strengthen environmental regulations, expand green financing, and integrate global best practices to align globalization with long-term environmental goals.