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The Link between Energy Consumption and Economic Growth in Gulf Cooperation Council Countries

Author

Listed:
  • Sadeq J. Abul

    (Sray for Economic Consultancy, Kuwait)

  • Elma Satrovic

    (Faculty of Economics and Administrative Sciences, Cag University, Turkey)

  • Adnan Muslija

    (University of Sarajevo, Bosnia and Herzegovina)

Abstract

The purpose of this research article is to provide the fresh evidence on the link between energy consumption (ENE) and economic growth (GDP) while controlling for the impact of CO2 emissions (CO) in the case of GCC (Gulf Cooperation Council) countries. To conduct the empirical study we have employed the panel VAR methodology in the period 1980-2014. The results suggest that economic growth increases the energy consumption. However, the negative link between CO2 emissions and economic growth is reported, implying the great awareness of the GCC countries on the environmental problems connected with the fossil fuels based energy. Thus, there is a serious incentive in these countries to deal with the potential environmental issues. One of the good alternatives is renewable energy. In addition, the increase in the energy efficiency is considered to be an important task in the future.

Suggested Citation

  • Sadeq J. Abul & Elma Satrovic & Adnan Muslija, 2019. "The Link between Energy Consumption and Economic Growth in Gulf Cooperation Council Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 38-45.
    • Handle: RePEc:eco:journ2:2019-05-7
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    References listed on IDEAS

    as
    1. Apergis, Nicholas & Payne, James E., 2010. "Renewable energy consumption and growth in Eurasia," Energy Economics, Elsevier, vol. 32(6), pages 1392-1397, November.
    2. Al-Mulali, Usama & Ozturk, Ilhan, 2014. "Are energy conservation policies effective without harming economic growth in the Gulf Cooperation Council countries?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 639-650.
    3. Alnaser, W.E. & Alnaser, N.W., 2011. "The status of renewable energy in the GCC countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 3074-3098, August.
    4. Michael R.M. Abrigo & Inessa Love, 2016. "Estimation of Panel Vector Autoregression in Stata: a Package of Programs," Working Papers 201602, University of Hawaii at Manoa, Department of Economics.
    5. Asif, M. & Muneer, T., 2007. "Energy supply, its demand and security issues for developed and emerging economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(7), pages 1388-1413, September.
    6. Andrews, Donald W. K. & Lu, Biao, 2001. "Consistent model and moment selection procedures for GMM estimation with application to dynamic panel data models," Journal of Econometrics, Elsevier, vol. 101(1), pages 123-164, March.
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    Citations

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    Cited by:

    1. Karen Fernandes & Y. V. Reddy, 2020. "Energy Consumption and Economic Growth in Newly Industrialised Countries of Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 384-391.
    2. Sahar Hassan Khayat, 2022. "Cross-Border Assets Holdings, Equity Securities, and Debt Securities between Gulf Cooperation Council (GCC) and Organization for Economic Co-Operation and Development (OECD)," International Business Research, Canadian Center of Science and Education, vol. 15(9), pages 1-77, September.
    3. Munir Ahmad & Gul Jabeen & Syed Ahsan Ali Shah & Abdul Rehman & Fayyaz Ahmad & Cem Işik, 2022. "Assessing long- and short-run dynamic interplay among balance of trade, aggregate economic output, real exchange rate, and CO2 emissions in Pakistan," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 7283-7323, May.
    4. Ali Ghofrani & Esmat Zaidan & Mohsen Jafari, 2021. "Reshaping energy policy based on social and human dimensions: an analysis of human-building interactions among societies in transition in GCC countries," Palgrave Communications, Palgrave Macmillan, vol. 8(1), pages 1-26, December.
    5. Farkhod Aminjonov, 2020. "Policy Innovations and Rationale for Sustainable Energy Transition in the UAE," Social Science Quarterly, Southwestern Social Science Association, vol. 101(7), pages 2398-2412, December.

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    More about this item

    Keywords

    economic growth; energy consumption; Gulf Cooperation Council;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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