The prospect of green hydrogen in Saudi Arabia: an overview of theoretical and empirical approach

Saudi Arabia is in a great position to create low-cost green hydrogen to diversify the economy and assist other nations in meeting carbon emission reduction targets due to the abundance of renewable energy sources, including solar and wind. The country may achieve this by becoming a leader in green hydrogen exports. The current research explores the prospects of green hydrogen production in the Saudi Arabia to demonstrate the current stage of hydrogen production in these countries. Previous studies checked renewable energy and carbon emissions nexus; however, in this study, hydrogen-based energy indicators are used for the first time. Also, contrary to the secondary data, forecasted data is used in this study. Through autoregressive distributive lag model is applied on Saudi Arabian data from 2020 to 2050. Results show that blue natural gas is significantly and positively related to carbon emission in the long run. Also, the relationship between green renewable energy and carbon emission is significant and negative and long and short run.