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Economic Impacts of Renewable Energy on the Economy of UAE

Author

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  • 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
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. 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.

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    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

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