Financial development and energy consumption: Is the MENA region different?

Gaies, Brahim; Kaabia, Olfa; Ayadi, Rim; Guesmi, Khaled; Abid, Ilyes

doi:10.1016/j.enpol.2019.111000

Cited by 71 publications

(43 citation statements)

References 45 publications

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“…The lagged renewable energy consumption remains significantly positive at 1% level. Earlier researchers has shown that energy consumption in current year is highly influenced by the level of energy consumed in the previous year (for instance, see Gaies et al 2019b ; Sadorsky 2011 ).…”

Section: Resultsmentioning

confidence: 99%

The impact of financial development and geopolitical risk on renewable energy consumption: evidence from emerging markets

Alsagr

Hemmen

2021

Environ Sci Pollut Res

136

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In the past three decades, the significance of large industrialized emerging economies has been highlighted. In terms of economic productivity and CO2 emissions, these markets play an important role in the global environment. Hence, to achieve global environmental needs, transition to renewable energy sources is essential. However, financial constraints along with geopolitical risks could act as possible barriers to the required transition. Thereby, in this paper, we aim to assess the impact of financial development and geopolitical risk on renewable energy consumption in emerging markets from 1996 to 2015. A two-step system GMM is tested, revealing a positive significant effect of financial development on transition to renewable energy. Moreover, contrary to the expected negative effect of geopolitical risk, our results reveal significant positive effect of geopolitical risk on renewable energy consumption. We highlight that the effects of both financial development and geopolitical risk are more pronounced in the long run. Finally, imperative policy implications are highlighted.

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Section: Resultsmentioning

confidence: 99%

The impact of financial development and geopolitical risk on renewable energy consumption: evidence from emerging markets

Alsagr

Hemmen

2021

Environ Sci Pollut Res

136

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“…Energy consumption can be influenced by financial developed as well which can turn into a higher rate of pollution while these two variables share an inverted U-shaped relationship (Gaies et al, 2019). These three variables of EC, pollution and income seem to share a strong relationship that has to do with their macroeconomic dynamics as well.…”

Section: Literature Reviewmentioning

confidence: 99%

Energy consumption, economic growth and pollution in Saudi Arabia

Mahmood¹,

Alkhateeb²,

Al-Qahtani³

et al. 2020

10.5267/j.msl

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Economic growth is very basic need of any economy but its environmental effects should not be ignored. We investigate the environmental effects of economic growth and energy consumption of Saudi Arabia. The study uses data of a period 1968-2014 and cointegration test and corroborates a long-and short-run relationships. The results indicate that economic growth and energy consumption contributes in CO2 emissions in both long-and short-run. It means that increasing economic growth of the Kingdom has social cost on the economy in terms of pollution emissions. Based on findings, we recommend to use the alternative renewable sources of energy consumption to avoid the pollution effects of growth in Saudi Arabia.

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“…While the energy usage for consumption is dependent on lifestyle (urbanisation and affluence), the energy usage for production would be associated with the level of technological progress. However, most of the studies in existing literature have not accounted for this demarcation in their empirical investigations (e.g., see Gaies et al (2019)). Second, the literature on the impact of financial development (FD) on energy consumption suggests mixed results which require further exploration of moderating factors.…”

Section: Introductionmentioning

confidence: 99%

“…Common economic wisdom would suggest a decrease in energy consumption or a transformation in energy consumption toward higher efficiency in a condition of higher energy price. However, the transformation of energy consumption, especially in technology, needs huge investment, which is, in return, out of economic agencies' interests (Geng et al, 2016). Thus, a higher FD may play important roles in helping a country to transform its energy consumption while facing external cost shocks in the form of higher energy prices.…”

Section: Introductionmentioning

confidence: 99%

Nexus between financial development & energy intensity: Two sides of a coin?

Nguyen

Thanh

Nasir

2020

Journal of Environmental Management

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This study examines the multidimensional impact of financial development (FD) on consumption energy intensity and production energy intensity. A global sample of 81 economies consisting of three subsamples (29 high income [HIEs], 21 upper middle income [UMEs] and 31 low and lower middle income [LMEs]) from 1997 to 2013 is analyzed by employing several estimators and an inclusive estimation strategy for empirical robustness. Our key findings suggest that: First, FD is broadly found to increase production energy intensity except for the negative effects of financial institutions' efficiency. The results also confirm the long-run relationship. The financial depth and financial access appear to reduce consumption energy intensity, while financial efficiency has the opposite effect. Financial institutions have increasing, while financial markets have decreasing impact on consumption energy intensity in the long run. Second, in the face of an oil price shock, countries with higher levels of FD experience a reduce production energy intensity, while the countries with stronger financial institutions experience a reduction in consumption energy intensity, however, opposite is true in the case of financial markets. Third, the FD appears to decrease production energy intensity in HIEs, while it has increasing effect in UMEs and mixed effects in LMEs. Meanwhile, the FD induces higher consumption energy intensity in LMEs, which is same for the impacts of financial markets in UMEs and HIEs. Lastly, financial institutions appear to reduce consumption energy intensity in UMEs and HIEs. Our findings have profound policy implications in the context of the debate on the role of finance in energy efficiency.

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Financial development and energy consumption: Is the MENA region different?

Cited by 71 publications

References 45 publications

The impact of financial development and geopolitical risk on renewable energy consumption: evidence from emerging markets

The impact of financial development and geopolitical risk on renewable energy consumption: evidence from emerging markets

Energy consumption, economic growth and pollution in Saudi Arabia

Nexus between financial development & energy intensity: Two sides of a coin?

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