Energy efficiency and capital-energy substitutability: Evidence from four OPEC countries

This paper is to study the resource curse applying annual data from 2002 to 2016 for the Organization of the Petroleum Exporting Countries (OPEC) members i.e. Algeria, Iran, Kuwait, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela. For this purpose, there were concerned the interactions role of resource abundance and institution quality, and their marginal effect of the countries’ economic growth. Results show that resource abundance and investment have a positive significant effect on the economic growth. Yet, initial income level is observed to have a significant negative effect on the economic growth. In addition, the results showed that the positive effects of resource abundance in the OPEC countries were reduced with increasing institutional quality. The empirical results rejected the resource curse assumption for OPEC, because the effects of resource abundance on the economies of OPEC were significantly positive. Results of the present study indicated, since the institutional structure of these countries is based on oil, the lack of oil revenues in short-run can have a negative effect on their economies.

Background: The nations that make up OPEC (the Organization of the Petroleum Exporting Countries) have traditionally depended on gas and oil export earnings. However, there is a significant global shift towards renewable energy in an effort to reduce the impact of climate change. This research aims to analyze the effect of Renewable Energy Consumption, CO2 Emissions, and Foreign Direct Investment (FDI) on the Economic Growth in OPEC Nations partially and simultaneously. Methods: In this research, panel data regression analysis techniques are combined with quantitative research approaches. Secondary data from the World Development Indicators (WDI) for the years 2001–2020 were used in this research. Finding: This research showed that the Renewable Energy Consumption and CO2 Emissions variables do not affect economic growth in OPEC countries. Meanwhile, the foreign direct investment variable has a positive and significant effect on economic growth in OPEC countries. Conclusion: OPEC countries need to diversify their economies and reduce their dependence on oil as there is a global shift towards cleaner energy. Novelty/Originality of this article: This study analyzes the impact of Renewable Energy Consumption, CO2 Emissions, and Foreign Direct Investment on Economic Growth in OPEC countries using panel data regression analysis. The study's findings show that only Foreign Direct Investment positively and significantly impacts economic growth.

<abstract> <p>This study investigated the effect of Industrialization on carbon emissions through energy consumption for a panel of eight Organization of the Petroleum Exporting Countries (OPEC) and nine High Industrialised Countries over the period 1985 to 2020; the study employs the first generation and second-generation Unit root tests. The study further adopts the use of the Panel Autoregressive Distributed Lag Model, and Common Correlated Effect pooled mean group to estimate the parameters of the model for OPEC countries and High Industrialised Countries, respectively. In addition, the Dumitrescu-Hurlin Granger causality test is conducted to infer the direction of causality among the variables. The causality test result reveals that, in OPEC, energy consumed during industrial activity is not enough to cause carbon emission and carbon emission does not cause industrialisation to interact with energy consumption. Also, for highly industrialised countries, interaction of energy consumption and industrialization causes carbon emission, but carbon emission does not cause the interaction of energy consumption and industrialization. The estimated model shows that the interactive effect of Industrialization and energy consumption has no significant influence on carbon emissions in OPEC countries in the short and long run. In contrast, foreign direct investment and economic growth have a positive and significant effect on carbon emissions in the short run. However, for highly industrialised countries the study found that the interactive effect of energy industrialization and energy consumption has a positive and significant effect on carbon emissions in the short run. It is apparent from the study that energy consumption for industrial activities, particularly in highly industrialised countries, causes carbon emission and such policy makers should formulate policy that necessitate the use of green energy for industrial activities to improve environmental quality.</p> </abstract>

The per capita greenhouse gas (GHG) emissions of Saudi Arabia were more than three times the global average emissions in 2019. The energy sector is the most dominant GHG-emitting sector in the country; its energy consumption has increased over five times in the last four decades, from over 2000 quadrillion joules in 1981 to around 11,000 quadrillion joules in 2019, while the share of renewable energy in 2019 was only 0.1%. To reduce GHG emissions, the Saudi Arabian government has undertaken initiatives for improving energy efficiency and increasing the production of renewable energies in the country. However, there are few investigative studies into the effectiveness of these initiatives in improving energy efficiency and reducing greenhouse gas emissions. This study provides an overview of the various energy efficiency and renewable energy initiatives undertaken in Saudi Arabia. Then, it evaluates the effectiveness of energy-related policies and initiatives using an indicator-based approach. In addition, this study performs temporal and econometrics analyses to understand the trends and the causal relationships among various drivers of energy sector emissions. Energy intensity and efficiency have improved moderately in recent years. This study will support policymakers in identifying significant policy gaps in reducing the emissions from the energy sector; furthermore, this study will provide a reference for tracking the progress of their policy initiatives. In addition, the methodology used in this study could be applied in other studies to evaluate various climate change policies and their progress.

The European Commission was informed of the negotiations between the companies and Organization of the Petroleum Exporting Countries (OPEC) by Angus Beckett, Chairman of the OECD Oil Committee. The relationship between the EC and OPEC, embedded in a complex configuration of international organizations, was profoundly altered by the first oil crisis. The first oil crisis therefore boosted initiatives by European countries to build ties with OPEC countries, either through direct contact or through the implementation of a global multilateralism. From 1979, attempts to conduct oil diplomacy through direct negotiations, be they political or economic, turned into diplomacy outside of interstate negotiations. The special relations between the United States and Saudi Arabia, at least until the mid-2010s, clearly hindered the establishment of direct relations between OPEC and the European Union, as well as any form of multilateral dialogue relating to oil.

Human activities in today's modern world would not be possible without oil. The oil consumed by the Organization of the Petroleum Exporting Countries (OPEC) has increased significantly. Several soft computing models exist for oil consumption modelling. However, the models are deficient in terms of predicting oil consumed by an OPEC country on the basis of the other OPEC countries' oil consumption. In this paper, a soft computing method is proposed for predicting oil consumption in OPEC countries. The significant, positive relationship among the oil consumption values of OPEC countries is also investigated. It was found that it is possible to predict the oil consumption of any OPEC country on the basis of the oil consumption of other OPEC countries with minimum and maximum accuracy of 94.63% and 97.10%, respectively. Statistical result validation clearly shows that the oil consumption predicted with the proposed model and the actual oil consumption are equal. The findings of this research can be applied for the efficient formulation of policies related to oil. Furthermore, oil consumption prediction is required for the management of greenhouse emissions, the creation of effective risk management frameworks, and revenue generation analysis. [Received: January 8, 2015; Accepted: November 23, 2015]

4 - THE RATIONALE FOR OPEC

Energy consumption and efficiency in buildings: current status and future trends

A dynamic network analysis of the world oil market: Analysis of OPEC and non-OPEC members

Organization of the Petroleum Exporting Countries (OPEC) has had quite a few successes in its history since the 1960: mostly in areas other than governing the market price of oil. From the end of 1973, OPEC countries were able to gain a significant degree of control over the oil price, but during the second oil shock of 1979/80 they were unable to stop an increase in prices that eventually got out of control and backfired. The cooperation within OPEC has helped very 'young' nation states, such as Nigeria or the United Arab Emirates, to establish themselves as crucial members of the international community and strong regional players. OPEC is an organization of sovereign landlords that have an interest in both preserving an international land rent and preventing a fast depletion of their natural resources. The chapter also presents an overview of the key concepts discussed in this book.

The inclusion of an index, which can be the representative of environmental quality from different aspects, seems to be of paramount significance. This issue is a major challenging one in the economic-environmental literature. This study investigates the role of financial development in economic growth effect on the composite environmental quality index (CEQI) in two groups of selected Organization of the Petroleum Exporting Countries (OPEC) and Organization for Economic Co-operation and Development (OECD) countries. In this regard, System Generalized Method of Moment (SYS-GMM) is applied to fit the research models. According to the findings, in the selected OPEC countries, financial development reinforces negative impacts of economic growth on environmental quality. In the selected OECD countries, economic growth has negative effect on the environmental quality and financial development weakens this effect. The effect of financial development on the CEQI is respectively negative and positive in OPEC and OECD countries. Moreover, in both groups of selected countries, energy consumption and economic growth have a negative impact on the CEQI; nonetheless, trade openness has a positive effect. Accordingly, some policy suggestions and new recommendations are presented for future studies, which would contribute to the better implementation of economic-environmental policies. Graphical abstract.

Greenhouse gas (GHG) emissions are an important factor in the evaluation of green industrial growth, when low GHG emissions along with high industrial growth are expected. In this paper, the improvement of sustainable development of industry in China (2007–2015) was investigated via analysis of the relationships between the GHG emissions and energy consumption in comparison to European countries. A hierarchical cluster analysis (HCA) was conducted to distinguish industrial growth with GHG emission and energy consumption structures. The results of this research indicated that green industrial growth in Europe had a negative annual rate of GHG emissions. This contributed to the ratio of renewable energy consumption increasing to a maximum of 33% and an average of 16%. In comparison, the GHG emissions in China increased at a rate of 50% to 77% in the main industrial provinces since 2007 with their rapid industrial growth. The rate of GHG emissions decreased after 2012, which was 7% or less than the rate of emissions in the industrial provinces. Contrary to in Europe, the decreasing rate of GHG emissions in China was attributed to the improvement of fossil energy efficiency, as renewable energy consumption was less than 10% in most industrial provinces. Our data analysis identified that the two different energy consumption strategies improved green industrial growth in Europe and China, respectively. Our data analysis identified the two different energy consumption strategies employed by Europe and China, each of which promoted green industrial growth in the corresponding areas. We concluded that China achieved green industrial growth through an increase in energy efficiency through technology updates to decrease GHG emissions, which we call the “China Model.” The “Europe Model” proved to be quite different, having the core characteristic of increasing renewable energy use.

PurposeThe purpose of this paper is to examine the impact of terrorism in the Organization of the Petroleum Exporting Countries (OPEC) on the return and volatility of world price of oil.Design/methodology/approachGARCH models and daily data from 1987 till 2015 will be used.FindingsThe empirical results reveal that terrorism in the OPEC affects positively oil returns and negatively its volatility. Results also show that the different characteristics of the attacks are likely to have different impact on the return and volatility of oil prices. In overall terms, terrorism has a much larger positive impact on the return of oil prices and negative impact on its volatility if it targets the oil industry in the OPEC. This marginal effect is even greater if those attacks were successful.Originality/valueThe distinguishing feature of this paper is that the authors use a framework that takes into account different attributes for terrorism the success of the attacks, the intensity of the attacks and the associated targets.

The Organization of the Petroleum Exporting Countries (OPEC) countries hold the top six ranks among all donors as regards the proportion of aid to Gross national income. The non-OPEC developing countries (NOPEC), though widely presumed to have been hardest hit by the 1973-1974 and 1978-1979 oil price increases, have managed to maintain a united front with the OPEC countries, particularly in negotiations with the industrial world on the restructuring of the international economic order. Several oil importing NOPEC countries did call for a special meeting to discuss oil prices at the United Nations Conference on Trade and Development held in Manila in June 1979, but were not able to generate sufficient support for such a move among the group as a whole. In 1979, OPEC's total crude oil production stood at about 31 million b/d, just over 28 million b/d of which were exported.

I n this paper, we investigate the existence and the nature of real exchange rate misalignment in Organization of the Petroleum Exporting Countries (OPEC). To do this we estimated a cross country basic real exchange rate determination model for 1990-2012 and extracted historic trend of misalignment. The results imply that all OPEC countries have had misalignment -of different kinds though- in their real exchange rate. In order to ensure the robustness of results, we also focused on historic trend of real exchange rate misalignment in Iran, which was derived by model, and observed considerable consistency with realities of policy making and economic performances in Iran. This indicated the compatibility of the estimation results with countries’ actual events.