On energy transition-led sustainable environment in COP26 era: policy implications from tourism, transportation services, and technological innovations for Gulf countries.

ABSTRACT

The present generation is witnessing the most devastating effects of global warming far beyond what was evident in the pre-industrial era. To forestall further ecosystem destruction, nations are working assiduously toward achieving sustainable global environment in decades to come, specifically by 2050. This ambitious goal prompts the convergence of countries in the last climate conference tagged COP26 which provides the roadmap to global sustainability. The resolutions of COP26 motivate the present study to assess the energy transition-led sustainable environment in Gulf countries, considering tourism, transport services, and technological innovation. The study employs annual data from 2005 to 2019 by relying on advanced second-generation estimators comprising cross-sectional ARDL (CS-ARDL), common correlated effects mean group (CCEMG), and augmented mean group (AMG). The study conducts robustness checks using quantile regression (QR) and quantile plots (QP). The results reveal that nonrenewable energy, tourism, and transport services hinder sustainable environment due to their inducing impacts on carbon emissions. Renewable energy and technological innovations promote sustainable environment by moderating the surge in carbon emissions. The QR results reveal that the regressors' effects are not one-off. For instance, the moderating effects of renewable energy correspond to increasing levels of the quantiles. In contrast, nonrenewable energy posits the opposite, thus confirming the energy transition-led sustainable environment hypothesis in the Gulf countries. Policy implications that drive sustainable environment are suggested based on the findings.