The interaction of finance and innovation for low carbon economy: Evidence from Saudi Arabia

Saudi Arabia sets an ambitious plan to install 58.7 GW renewable capacity along with several mitigation measures. For the smooth accomplishment of undertaken projects, role financial market is crucial. This paper investigates development in explaining low carbon economy (LCE), incorporating innovation context Arabia, where fossil fuel contributes almost 100% share total energy mix. We apply standard, asymmetric, and quantile Autoregressive Distributed Lag (ARDL) Approaches analyse our time-series data from 1981 2016 (both yearly monthly forms). Our empirical analysis demonstrates that finance asymmetrically fosters economy, but it helps achieve a through channel under different economic circumstances. evidence reinforces overcoming constraints for launching green projects. • assess induced on economy. Finance asymmetric manner.