Understanding the relationship between electric power consumption, technological transfer, financial development and environmental quality.

This research paper attempts to investigate both the long-run and causality relationship among electric power consumption (EPC), technological transfer, financial development (FD), and environmental quality for the Saudi Arabia (KSA) economy from 1980 to 2019. In doing so, we propose a carbon emission function tested by incorporating multi-steps techniques such as autoregressive distributed lag (ARDL) has been exploited to determine the existence of cointegration or no; while vector error correction model (VECM) has been applied to decide the direction of causality. In this paper we have proposed two proxies of technological transfer, namely imported technology (MT) and Technical cooperation grants (TCG).