IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2022-01-19.html
   My bibliography  Save this article

Economic Impacts of Renewable Energy on the Economy of UAE

Author

Listed:
  • Mohammad Sulieman Jaradat

    (Department of Banking and Financial Sciences, Ajloun National University, Jordan,)

  • Khaled Abdalla Moh d AL-Tamimi

    (Department of Financial and Administrative Sciences, Irbid University College, Al-Balqa Applied University, Jordan.)

Abstract

This research is concerned with the study and analysis of the economic impacts of renewable energy on the UAE s economy. We took annual time series data for variables that include renewable energy consumption, per capita GDP, capital creation, employment, trade, inflation rate, interest rate, fixed exchange rate, foreign direct investment, and trade openness for the time period from 2010 to 2020. Initially, we applied the autoregressive distributed lag (ARDL) model to assess the long-term relationship between the variables. We encountered a multi-linearity problem where we found the correlation between the independent variables. Therefore, we adopted the alternative approach of the Ordinary Least Squares (OLS) technique to measure the relationship between renewable energy and the UAE economy. We have made an equation from OLS, in which we take renewable energy and economic growth as the independent and dependent variables, respectively. The results confirmed that there is a statistically significant relationship between renewable energy and the economy in the United Arab Emirates.

Suggested Citation

  • Mohammad Sulieman Jaradat & Khaled Abdalla Moh d AL-Tamimi, 2022. "Economic Impacts of Renewable Energy on the Economy of UAE," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 156-162.
    • Handle: RePEc:eco:journ2:2022-01-19
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijeep/article/download/11982/6200/29460
    Download Restriction: no
    File URL: http://www.econjournals.com/index.php/ijeep/article/view/11982/6200
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Muhammad Haseeb & Irwan Shah Zainal Abidin & Qazi Muhammad Adnan Hye & Nira Hariyatie Hartani, 2019. "The Impact of Renewable Energy on Economic Well-Being of Malaysia: Fresh Evidence from Auto Regressive Distributed Lag Bound Testing Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 269-275.
    2. Apergis, Nicholas & Payne, James E., 2010. "Renewable energy consumption and economic growth: Evidence from a panel of OECD countries," Energy Policy, Elsevier, vol. 38(1), pages 656-660, January.
    3. Faria, Hugo J. & Montesinos-Yufa, Hugo M. & Morales, Daniel R. & Navarro, Carlos E., 2016. "Unbundling the roles of human capital and institutions in economic development," European Journal of Political Economy, Elsevier, vol. 45(S), pages 108-128.
    4. Charfeddine, Lanouar & Kahia, Montassar, 2019. "Impact of renewable energy consumption and financial development on CO2 emissions and economic growth in the MENA region: A panel vector autoregressive (PVAR) analysis," Renewable Energy, Elsevier, vol. 139(C), pages 198-213.
    5. Cavalcanti, Tiago V. de V. & Mohaddes, Kamiar & Raissi, Mehdi, 2011. "Growth, development and natural resources: New evidence using a heterogeneous panel analysis," The Quarterly Review of Economics and Finance, Elsevier, vol. 51(4), pages 305-318.
    6. Sascha O. Becker & Katrin Boeckh & Christa Hainz & Ludger Woessmann, 2016. "The Empire Is Dead, Long Live the Empire! Long‐Run Persistence of Trust and Corruption in the Bureaucracy," Economic Journal, Royal Economic Society, vol. 126(590), pages 40-74, February.
    7. Stratford Douglas & Anne Walker, 2017. "Coal Mining And The Resource Curse In The Eastern United States," Journal of Regional Science, Wiley Blackwell, vol. 57(4), pages 568-590, September.
    8. Alam, Md. Mahmudul & Murad, Md. Wahid, 2020. "The impacts of economic growth, trade openness and technological progress on renewable energy use in organization for economic co-operation and development countries," Renewable Energy, Elsevier, vol. 145(C), pages 382-390.
    9. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
    10. DeCarolis, Joseph F. & Hunter, Kevin & Sreepathi, Sarat, 2012. "The case for repeatable analysis with energy economy optimization models," Energy Economics, Elsevier, vol. 34(6), pages 1845-1853.
    11. Apergis, Nicholas & Payne, James E., 2010. "Coal consumption and economic growth: Evidence from a panel of OECD countries," Energy Policy, Elsevier, vol. 38(3), pages 1353-1359, March.
    12. Antonio Cabrales & Esther Hauk, 2011. "The Quality of Political Institutions and the Curse of Natural Resources," Economic Journal, Royal Economic Society, vol. 121(551), pages 58-88, March.
    13. Dogan, Eyup & Altinoz, Buket & Madaleno, Mara & Taskin, Dilvin, 2020. "The impact of renewable energy consumption to economic growth: A replication and extension of Inglesi-Lotz (2016)," Energy Economics, Elsevier, vol. 90(C).
    14. Syeda Azra Batool & Humara Ahmad & Syed Muhammad Ahmad Hassan Gillani & Hamad Raza & Muhammad Siddique & Nohman Khan & Muhammad Imran Qureshi, 2021. "Investigating the Causal Linkage among Economic Growth, Energy Consumption, Urbanization and Environmental Quality in ASEAN-5 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 319-327.
    15. Eregha, P.B. & Mesagan, Ekundayo Peter, 2016. "Oil resource abundance, institutions and growth: Evidence from oil producing African countries," Journal of Policy Modeling, Elsevier, vol. 38(3), pages 603-619.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shadeedha Mohamed Saradara & Malik Mansoor Ali Khalfan & Abdul Rauf & Rubina Qureshi, 2023. "On The Path towards Sustainable Construction—The Case of the United Arab Emirates: A Review," Sustainability, MDPI, vol. 15(19), pages 1-26, October.
    2. Omar Alkasasbeh & Ohoud Khasawneh & Amro Alzghoul, 2023. "The Nexus between Renewable Energy Consumption and Economic Growth: Empirical Evidence from Jordan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 194-199, March.
    3. Adam Krzymowski, 2022. "Energy Transformation and the UAE Green Economy: Trade Exchange and Relations with Three Seas Initiative Countries," Energies, MDPI, vol. 15(22), pages 1-20, November.
    4. Shaima A. Alnaqbi & Abdul Hai Alami, 2023. "Sustainability and Renewable Energy in the UAE: A Case Study of Sharjah," Energies, MDPI, vol. 16(20), pages 1-30, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ruba Aljarallah, 2021. "An Analysis of the Impact of Rents from Non-renewable Natural Resources and Changes in Human Capital on Institutional Quality: A Case Study of Kuwait," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 224-234.
    2. Farrukh Nawaz Kayani, 2021. "Renewable Energy and Economic Growth Nexus: A Case of United Arab Emirates," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 504-509.
    3. Das, Narasingha & Bera, Pinki & Panda, Deepak, 2022. "Can economic development & environmental sustainability promote renewable energy consumption in India?? Findings from novel dynamic ARDL simulations approach," Renewable Energy, Elsevier, vol. 189(C), pages 221-230.
    4. Daniel Ştefan Armeanu & Ştefan Cristian Gherghina & George Pasmangiu, 2019. "Exploring the Causal Nexus between Energy Consumption, Environmental Pollution and Economic Growth: Empirical Evidence from Central and Eastern Europe," Energies, MDPI, vol. 12(19), pages 1-27, September.
    5. Riza Radmehr & Samira Shayanmehr & Ernest Baba Ali & Elvis Kwame Ofori & Elżbieta Jasińska & Michał Jasiński, 2022. "Exploring the Nexus of Renewable Energy, Ecological Footprint, and Economic Growth through Globalization and Human Capital in G7 Economics," Sustainability, MDPI, vol. 14(19), pages 1-19, September.
    6. Francisco García-Lillo & Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa, 2023. "Renewable Energies and Sustainable Development: A Bibliometric Overview," Energies, MDPI, vol. 16(3), pages 1-22, January.
    7. Sueyoshi, Toshiyuki & Mo, Fei & Wang, Derek D., 2022. "Sustainable development of countries all over the world and the impact of renewable energy," Renewable Energy, Elsevier, vol. 184(C), pages 320-331.
    8. Huthaifa Alqaralleh, 2021. "On the nexus of CO2 emissions and renewable and nonrenewable energy consumption in Europe: A new insight from panel smooth transition," Energy & Environment, , vol. 32(3), pages 443-457, May.
    9. Cong Khai Dinh & Quang Thanh Ngo & Trung Thanh Nguyen, 2021. "Medium- and High-Tech Export and Renewable Energy Consumption: Non-Linear Evidence from the ASEAN Countries," Energies, MDPI, vol. 14(15), pages 1-16, July.
    10. Li, Raymond & Lee, Hazel, 2022. "The role of energy prices and economic growth in renewable energy capacity expansion – Evidence from OECD Europe," Renewable Energy, Elsevier, vol. 189(C), pages 435-443.
    11. Alssadek, Marwan & Benhin, James, 2023. "Natural resource curse: A literature survey and comparative assessment of regional groupings of oil-rich countries," Resources Policy, Elsevier, vol. 84(C).
    12. Montassar Kahia & Anis Omri & Bilel Jarraya, 2021. "Green Energy, Economic Growth and Environmental Quality Nexus in Saudi Arabia," Sustainability, MDPI, vol. 13(3), pages 1-13, January.
    13. Ruba A. Aljarallah & Andrew Angus, 2020. "Dilemma of Natural Resource Abundance: A Case Study of Kuwait," SAGE Open, , vol. 10(1), pages 21582440198, January.
    14. Assi, Ala Fathi & Zhakanova Isiksal, Aliya & Tursoy, Turgut, 2021. "Renewable energy consumption, financial development, environmental pollution, and innovations in the ASEAN + 3 group: Evidence from (P-ARDL) model," Renewable Energy, Elsevier, vol. 165(P1), pages 689-700.
    15. Khan, Anwar & Chenggang, Yang & Hussain, Jamal & Kui, Zhou, 2021. "Impact of technological innovation, financial development and foreign direct investment on renewable energy, non-renewable energy and the environment in belt & Road Initiative countries," Renewable Energy, Elsevier, vol. 171(C), pages 479-491.
    16. Marra, Alessandro & Colantonio, Emiliano, 2021. "The path to renewable energy consumption in the European Union through drivers and barriers: A panel vector autoregressive approach," Socio-Economic Planning Sciences, Elsevier, vol. 76(C).
    17. Zhang, Mingming & Zhang, Shichang & Lee, Chien-Chiang & Zhou, Dequn, 2021. "Effects of trade openness on renewable energy consumption in OECD countries: New insights from panel smooth transition regression modelling," Energy Economics, Elsevier, vol. 104(C).
    18. Zhou, Anhua & Li, Jun, 2022. "How do trade liberalization and human capital affect renewable energy consumption? Evidence from the panel threshold model," Renewable Energy, Elsevier, vol. 184(C), pages 332-342.
    19. Montassar Kahia & Anis Omri & Bilel Jarraya, 2020. "Does Green Energy Complement Economic Growth for Achieving Environmental Sustainability? Evidence from Saudi Arabia," Sustainability, MDPI, vol. 13(1), pages 1-12, December.
    20. Radmehr, Riza & Henneberry, Shida Rastegari & Shayanmehr, Samira, 2021. "Renewable Energy Consumption, CO2 Emissions, and Economic Growth Nexus: A Simultaneity Spatial Modeling Analysis of EU Countries," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 13-27.

    More about this item

    Keywords

    Economic Impacts; Renewable Energy; Economy of the UAE;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Y - Miscellaneous Categories

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2022-01-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.