Dr. Vimala Venugopal Muthuswamy School of Business, Department of Management, King Faisal University, Al hasa 31982, Kingdom of Saudi Arabia.
Email: fmuthuswamy@kfu.edu.sa
Dr. Amit Sharma College of Economics and Business Administration, University of Technology and Applied Sciences Salalah, Oman.
Email: amit.s@sct.edu.om

Abstract:

The objective of this study was to examine the moderating effect of environmental governance (ENVGOV) on the relationship between environmental innovation (ENVINN) and carbon dioxide emissions (CO2E) in Saudi Arabian companies. The data was obtained from Eickon and annual reports spanning the years 2010 to 2021. The use of a longitudinal research design coupled with a quantitative research approach is recommended. Panel data was employed for the purpose of conducting data analysis. The empirical findings from the panel data analysis reveal a statistically significant and negative relationship between ENVINN and CO2E. The findings regarding the indirect moderating effect also demonstrate that environmental governance has a significant and negative moderating role in the relationship between environmental innovation and carbon dioxide emissions. The findings pertaining to robustness also indicate a detrimental impact of ENVINN on carbon dioxide emissions. This research is regarded as a pioneering study that explores the extended framework of the moderating effect of ENVINN on the relationship between ENVINN and CO2E, specifically within the context of Saudi Arabia. The findings of our study hold considerable relevance for both businesses and policymakers, as they pertain to the adoption of environmentally sustainable technologies and the enhancement of environmental governance with the aim of reducing carbon dioxide emissions. This study additionally demonstrates the significance of environmental innovations in enhancing a company's environmental and operational performance through the mitigation of carbon dioxide emissions.

Keywords:environmental innovation, carbon dioxide emissions, Saudi Arabia.