authors
Shalal Hamza Abdullah

abstract
The Autoregressive Distributed Lag (ARDL) model will be used in this study to examine how macroeconomic factors affect per capita income in Saudi Arabia and the United Arab Emirates. Four primary factors were examined: carbon dioxide emissions, per capita renewable energy, taxes and levies, and natural capital. The study aimed to evaluate the association between macroeconomic factors and per capita income, investigate the influence of taxes and fees, natural capital, per capita renewable energy, and carbon emissions on per capita income, and analyze the correlations between these variables in the short and long run. For better study applicability, annual data from 2004 to 2022 were used and transformed to quarterly data. All variables were non-stationary at the level but became stationary after initial differencing, according to the findings of the unit root tests. This complies with the conditions needed to use the ARDL model. Per capita income and the macroeconomic variables showed a cointegrating connection, according to cointegration studies conducted in Saudi Arabia and the United Arab Emirates. There was a cointegrating connection in the UAE since the F-statistic value was higher than the upper bound of the crucial values. A comparable outcome was noted in Saudi Arabia, where the F-statistic was higher than the upper bound of the critical values.