Asymmetric effect of human capital on the ecological footprint within the EKC framework in Saudi Arabia

Abstract

In contrast with previous studies exploring the linear effect of increasingly educated human capital on environmental degradation, this study examined the non-linear relationship utilizing the Environmental Kuznets Curve (EKC) framework. It offers empirical evidence considering the developing and oil-rich economy of Saudi Arabia. The ARDL model was estimated, to reveal that the gross tertiary enrolment ratio has an inverse-U shaped relationship with ecological footprint. This is consistent with our assumption within EKC model, in that when schooling enrolment rates are low in the early stages of economic development, environmental degradation is augmented. However, after reaching the turning point in education, the increase in enrolment rates reduces degradation. This indicates that human capital can exert opposing effects on environmental quality, relative to level of economic development and expansion in education. The empirical findings suggest education is vital to reduce environmental degradation and upgrade energy efficiency and sustainability in the context of Saudi Arabia. The study suggests raising individuals’ awareness, environmental education, and increasing knowledge concerning the significance of climate change actions must be integrated into environmental policies and strategic agendas.