نوع مقاله : مقاله پژوهشی

نویسنده

• فروغ اسمعیلی صدرآبادی

استادیار دانشگاه شهید بهشتی تهران

چکیده

The Middle East is a crucial area for global energy dynamics, housing five major oil-producing nations: Saudi Arabia, Iraq, the United Arab Emirates, Iran, and Kuwait. Together ,these nations make up more than 40% of the world’s oil exports as of 2022. Despite having vast fossil fuel resources, which contribute almost 95% of the electricity produced in the region, the Middle East confronts substantial challenges, including climate change and increasing domestic energy demands.

This research investigates the correlation between the adoption of renewable energy and economic growth in countries within this region, emphasizing the urgency of shifting towards sustainable energy solutions to diversify economies in light of unpredictable fossil fuel markets. Analyzing panel data spanning from 1990 to 2022, the study employs Dynamic Ordinary Least Squares (DOLS) and Fully Modified Ordinary Least Squares (FMOLS) methodologies to evaluate these impacts.

Findings reveal that while the consumption of non-renewable energy significantly influences GDP growth, its effect is much less pronounced than that of renewable energy. For instance, a 1% rise in gross fixed capital formation is associated with a 0.0328% increase in GDP. In comparison, greater trade openness and workforce expansion relate to GDP increases of 0.378% and 0.448%, respectively. Interestingly a 1% rise in fuel usage results in a 0.611% increase in GDP, while the effect of increased consumption of non-renewable energy is restrained to a slight 0.127% growth.

This study highlights the critical need for Middle Eastern economies to prioritize investments in renewable energy to foster sustainable development and ensure environmental health. With the region's abundant solar energy potential, enhancing the role of renewable sources is essential to reduce CO2 emissions and strengthen economic stability amid changing global energy landscapes.

کلیدواژه‌ها

• Middle East
• . renewable and non renewable energy . economic growth
• . . Dynamic Ordinary Least Squares
• and Fully Modified Ordinary Least Squares
• . sustainability

موضوعات

• اقتصاد انرژی، محیط زیست و منابع طبیعی

عنوان مقاله [English]

Analyzing the Role of Conventional Energy Sources in Economic Expansion within the Middle East

نویسنده [English]

• Forough EsmaeilySadrabadi

Assistant Professor of Economics, Shahid Beheshti University, Tehran, Iran

چکیده [English]

The Middle East is a crucial area for global energy dynamics, housing five major oil-producing nations: Saudi Arabia, Iraq, the United Arab Emirates, Iran, and Kuwait. Together ,these nations make up more than 40% of the world’s oil exports as of 2022. Despite having vast fossil fuel resources, which contribute almost 95% of the electricity produced in the region, the Middle East confronts substantial challenges, including climate change and increasing domestic energy demands.

This research investigates the correlation between the adoption of renewable energy and economic growth in countries within this region, emphasizing the urgency of shifting towards sustainable energy solutions to diversify economies in light of unpredictable fossil fuel markets. Analyzing panel data spanning from 1990 to 2022, the study employs Dynamic Ordinary Least Squares (DOLS) and Fully Modified Ordinary Least Squares (FMOLS) methodologies to evaluate these impacts.

Findings reveal that while the consumption of non-renewable energy significantly influences GDP growth, its effect is much less pronounced than that of renewable energy. For instance, a 1% rise in gross fixed capital formation is associated with a 0.0328% increase in GDP. In comparison, greater trade openness and workforce expansion relate to GDP increases of 0.378% and 0.448%, respectively. Interestingly a 1% rise in fuel usage results in a 0.611% increase in GDP, while the effect of increased consumption of non-renewable energy is restrained to a slight 0.127% growth.

This study highlights the critical need for Middle Eastern economies to prioritize investments in renewable energy to foster sustainable development and ensure environmental health. With the region's abundant solar energy potential, enhancing the role of renewable sources is essential to reduce CO2 emissions and strengthen economic stability amid changing global energy landscapes.

کلیدواژه‌ها [English]

• Middle East
• . renewable and non renewable energy . economic growth
• . . Dynamic Ordinary Least Squares
• and Fully Modified Ordinary Least Squares
• . sustainability