Abstract
This study examines the micro-level impact of renewable energy transition on key socio-economic indicators within a resource-dependent economy. Using firm-level panel data from 42 large Saudi firms spanning 2012–2024, we employ Generalized Method of Moments (GMM) estimation and Impulse Response Function (IRF) analysis. Our purpose is to assess the effects of renewable infrastructure investment (RII) and renewable adoption on employment, energy access, and firm revenue growth (FRG). The findings indicate that RII has a short-run positive impact on employment and energy access, a trend that has been accentuated following Saudi Arabia’s Vision 2030 announcement. However, the positive effect of RII on FRG manifests only in the long run and is conditional on oil price volatility. Furthermore, the employment benefits are not distributed equally between large firms and SMEs. Practical implications suggest that the initial policy should focus on infrastructure investment and subsidies to boost short-term job creation and energy access. Subsequently, policy must pivot to foster broader structural transformation through widespread adoption of renewable energy to achieve sustainable, inclusive long-term economic growth.