The Persian Gulf region, dependent on fossil fuels and with high ecological footprints, faces harsh environmental threats, including carbon-intensive economies, vulnerabilities to climate change, and the risk of catastrophic oil spills. This study examines the effects of adopting green technology and of financial globalization on the improvement of sustainable biocapacity in the Gulf Cooperation Council (GCC) countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE) and other Persian Gulf countries (Iran and Iraq). This study uses a multivariate panel econometric approach, employing second-generation unit root and cointegration tests and Fully Modified Ordinary Least Squares (FMOLS) to evaluate the contributions of the renewable energy transition, climate-related technology, financial globalisation, economic growth, and urbanisation to the preservation of biocapacity from 1990 to 2023. The results indicate that Energy Transition (EGT) and Climate Technology (CTN) have positive effects on Sustainable Biocapacity (STB), whereas Economic Growth (EG) and Urbanisation (UBZ) have adverse effects. Financial Globalisation (FNG) demonstrates a positive relationship with STB, highlighting the dual role of cross-border financial flows in supporting sustainable practices. Interestingly, GCC countries with stronger renewable energy adoption show faster improvements in STB compared to non-GCC countries. The article emphasises the following key policy levers necessary for the region: (i) scaling up investments in renewable energy infrastructure, (ii) integrating financial globalisation with sustainable development goals via green bonds and carbon-pricing mechanisms, and (iii) enhancing institutional capacity for effective resource management and environmental planning. These strategies are critical for achieving the United Nations (UN) Sustainable Development Goals (SDGs) by 2030, with SDG 7 (Affordable Clean Energy) and SDG 13 (Climate Action) being particularly significant.
Chen Xie (Fri,) studied this question.