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Is reducing energy intensity enough to put the oil-rich GCC states on a more sustainable environmental path?

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  • Amany A. El Anshasy

    (United Arab Emirates University)

  • Marina-Selini Katsaiti

    (United Arab Emirates University)

Abstract

Although energy wealth rankings place the six Gulf Cooperation Council (GCC) countries among the richest in the world, these economies face unsustainable growth in energy use and continuous environmental degradation. This paper examines the long-run relationship between per capita $$\hbox {CO}_2$$ CO 2 emissions and energy intensity in the GCC, while controlling for economic activity, the size of the manufacturing sector, and institutional qualities. We use heterogeneous panel techniques that account for heterogeneity and cross-country dependence for the period 1971–2011. We find that energy intensity and emissions are cointegrated in all GCC countries and that conservation and energy efficiency policies have greater potential in reducing emissions in Kuwait, Oman, and the UAE. A regional goal of mitigating emissions by 10% would require a reduction in energy intensity by 12%, on average. Last, we find that judiciary independence is an essential institutional quality that ensures the successful implementation and the stringent enforcement of long-term environmental policies.

Suggested Citation

  • Amany A. El Anshasy & Marina-Selini Katsaiti, 2018. "Is reducing energy intensity enough to put the oil-rich GCC states on a more sustainable environmental path?," Empirical Economics, Springer, vol. 55(3), pages 965-992, November.
  • Handle: RePEc:spr:empeco:v:55:y:2018:i:3:d:10.1007_s00181-017-1298-2
    DOI: 10.1007/s00181-017-1298-2
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    More about this item

    Keywords

    Energy intensity; Oil; $$hbox {CO}_2$$ CO 2 emissions; Environment; GCC;
    All these keywords.

    JEL classification:

    • Q35 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Hydrocarbon Resources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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