ENERGY EFFICIENCY AND THE GREEN–BLUE INNOVATION NEXUS: NONLINEAR EVIDENCE FROM GCC ECONOMIES

The research focuses on the ways in which the economies of the GCC can achieve growth in a sustainable manner, while also overcoming environmental challenges. The research, which employs a dynamic panel System GMM approach from 2000 to 2024, reveals three key findings. First, it is clear that energy intensity is detrimental to sustainability, reinforcing the importance of energy efficiency. Second, green innovation, as measured by the use of renewable energy, environmental patents, and clean technology, is a key driver of sustainable growth. Finally, developing blue resources is also a contributor to sustainability, and it can be seen as complementary to green innovation. Furthermore, the research also reveals that institutional quality is an important moderator of the results. Overall, it can be seen that there is clear policy guidance for the GCC economies, which are seeking a new economic model based on a low carbon, innovation-driven, and sustainable growth strategy.