Sustainability Under the Lens: A Comparative ARDL Analysis of Technology, Energy, Trade, and Industry in Saudi Arabia and Tunisia

This study investigates the dynamics between energy consumption, trade openness, industrialization, technological innovation, and population density in shaping environmental sustainability in Saudi Arabia and Tunisia. Employing the Autoregressive Distributed Lag (ARDL) model, the research evaluates short- and long-term relationships using data from 1991 to 2023. Key findings reveal that Saudi Arabia's CO2 emissions are predominantly influenced by energy use and trade openness, underscoring the challenges of its fossil-fuel-reliant economy. Conversely, Tunisia demonstrates a faster adjustment to long-term equilibrium, with industrial modernization and trade-related factors reducing emissions. Population density impacts environmental outcomes differently across the two countries, reflecting the influence of urban planning and energy efficiency. These results emphasize the need for tailored sustainability policies, with Saudi Arabia focusing on renewable energy adoption and industrial policy reform, and Tunisia enhancing trade regulations and energy efficiency. The study contributes to the comparative literature on sustainability, providing valuable insights for policymakers and researchers aiming to balance economic growth with environmental preservation in resource-diverse economies.