Assessing the Impact of Environmental Technology on CO2 Emissions in Saudi Arabia: A Quantile-Based NARDL Approach

Climatic change and environmental degradation have become a worldwide discourse. Green innovation is commonly viewed as a means of lowering environmental pollution in the era of climate change. Considering this, the primary purpose of this study is to investigate the effects of environmental technology (ET) on CO2 emissions by controlling Saudi Arabia's ICT use, energy use, energy intensity, and financial development. It uses a quantile-based multiple-threshold "nonlinear autoregressive distributed lag (NARDL)" estimation utilizing data from 1990 to 2020. It also conducts the ARDL and NARDL estimation techniques simultaneously for comparative outcomes. The Toda-Yamamoto (T-Y) causality assessment also crosschecks the primary multiple-threshold NARDL estimates. The outcomes reveal that ET promotes environmental pollution due to its low scale compared to the Kingdom's technological base. ICT improves environmental quality, and energy consumption deteriorates it. All three estimation techniques confirm these findings. The multiple-threshold NARDL estimation appears robust and reveals damaging impacts of energy intensity and financial development on emissions. The T-Y causality assessment also authenticates the primary estimation outcomes. The outcomes have important implications for policymakers to focus on enhancing patents for ET, raising ICT diffusion, reducing energy intensity through generating more renewable energies, expanding financial support for ICT and green investments, and ensuring a sustainable environment.