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How does energy intensity impact economic growth for the case of a small island country

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  • Fatema Janahi
  • Helmi Hamdi
  • Mehdi Mili

Abstract

In this article, we explore the relationships between economic growth and energy intensity in Bahrain, and we analyse how energy intensity, population, and other macroeconomic variables are associated with each in the short and long run. In the empirical section we use data span from 1980 to 2019 and we perform a vector error correction model and cointegration technique to detect causality between the variables used in the model. The main findings of this article show that economic growth, population and FDI increased energy intensity in Bahrain in the short run. Therefore, an urgent need to be embedded in the sustainable energy action plan to limit the harmful effects of economic activity on the environmental quality in Bahrain and to ensure environmental sustainability.

Suggested Citation

  • Fatema Janahi & Helmi Hamdi & Mehdi Mili, 2025. "How does energy intensity impact economic growth for the case of a small island country," Natural Resources Forum, Blackwell Publishing, vol. 49(4), pages 3404-3420, November.
    • Handle: RePEc:wly:natres:v:49:y:2025:i:4:p:3404-3420
    DOI: 10.1111/1477-8947.12535
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