The impact of global renewable energy demand on economic growth – evidence from GCC countries

Lahrech, Abdelmounaim; Abu-Hijleh, Bassam

The impact of global renewable energy demand on economic growth – evidence from GCC countries

Date

2023

Authors

Lahrech, Abdelmounaim

Abu-Hijleh, Bassam

Publisher

Emerald Publishing Limited

Abstract

Purpose – This study aims to examine the relationship between global renewable energy consumption and economic growth in Gulf Cooperation Council (GCC) countries from 2001 to 2019. Design/methodology/approach – This paper used a panel regression model to study the six GCC countries over the period from 2001 to 2019. Findings – As expected, the findings indicated a significant and negative relationship between global renewable energy consumption and GCC economic growth. Additionally, there was a positive and significant relationship between GCC economic growth and the control variables, specifically labor, capital, CO2 emissions and non-renewable energy production. Practical implications – The results are of great importance to policymakers in GCC oil-exporting countries, as expected growth in renewable energy consumption will lower their economic growth in the future. Hence, they should first diversify their economy and lower their dependence on oil. Second, these countries can invest in solar energy through international joint ventures, especially with North African countries in close proximity to Europe, to become leaders in solar energy production. Originality/value – How global energy consumption is related to GCC countries’ economic growth remains unclear, not only in GCC countries but also in many oil-exporting countries around the world, so future studies are needed. Furthermore, GCC governments will be able to create appropriate policies for the green economy and achieve their objectives if they have a comprehensive understanding of how global growth in renewable energy demand affects GCC economies. Keywords Gulf Cooperation Council (GCC), Global renewable energy, Non-renewable energy, Economic growth Paper type Research pape

Keywords

Gulf Cooperation Council (GCC), Global renewable energy, Non-renewable energy,Economic growth

Citation

Lahrech, A., Abu-Hijleh, B. and Aldabbas, H. (2024) “The impact of global renewable energy demand on economic growth - evidence from GCC countries,” Arab Gulf Journal of Scientific Research, 42(3), pp. 498–511.