The Role of Renewable Energy in Driving Economic Transformation and Sustainable Development in Saudi Arabia

Abstract

This study explores the impact of renewable energy on economic transformation and sustainable development. A comprehensive literature review was conducted using the Scopus database, focusing on articles, reviews, and book chapters published between 2014 and 2023. The search employed keywords such as “renewable energy,” “development,” “economy,” and “sustainable development,” with filters applied for language, subject area, geography, and document type. The analysis reveals that adopting renewable energy reduces ecological footprints and greenhouse gas emissions, promoting environmental sustainability. Specific renewable energy sources, particularly wind energy, are identified as effective catalysts for sustainable economic development. The study highlights the role of renewable energy consumption in supporting economic growth, tourism, and GDP growth. The significance of hydrogen as a clean energy carrier, along with its production from renewable sources, is also emphasized. The findings underscore the crucial role of renewable energy technologies in driving economic transformation and sustainable development by enhancing environmental sustainability, stimulating economic growth, creating employment opportunities, and facilitating the transition to a low-carbon economy. However, challenges persist, requiring supportive policies, financial inclusion, and technological advancements to optimize the benefits of renewable energy adoption. Future research should expand geographical coverage, improve data quality, standardize methodologies, explore socio-political dimensions, assess distributional impacts, and promote interdisciplinary collaboration to effectively address the complex challenges associated with renewable energy and economic development.