article · Energies
This research investigated the relationship between oil price and energy depletion in the Gulf Cooperation Council (GCC) region from 1970 to 2017, specifically considering asymmetrical effects. A panel analysis of GCC countries revealed that oil price has an asymmetrical positive impact on energy depletion. To avoid aggregation bias, a time-series analysis was also conducted for each individual GCC country. This country-specific analysis found that both increasing and decreasing oil prices positively affect energy depletion across all six GCC nations. The magnitude of these effects varied, with most countries showing elastic responses. Asymmetry in the relationship, specifically regarding the different magnitudes of effects, was established for Bahrain, Kuwait, and Saudi Arabia.
Understanding how oil price fluctuations influence energy depletion is crucial for oil-exporting economies. This research provides insights into the complex dynamics between market forces and resource consumption, which can inform energy policies and sustainable resource management strategies in oil-dependent nations.
The abstract does not indicate a direct application pathway for this economic analysis. The findings are primarily relevant for policy formulation and economic modelling rather than immediate commercialisation.
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Oil price has played a prominent role in oil exporter economies and may also affect energy depletion in oil-dependent countries. Considering asymmetry, the relationship between oil price (OP) and energy depletion has been investigated in the Gulf Cooperation Council (GCC) region from 1970 to 2017. We find asymmetrical positive effects of OP on the energy depletion in the panel of the GCC region. To avoid aggregation biasness in the panel estimates, we also conduct a time-series analysis on each GCC country. We find a positive impact of increasing OP on the energy depletion in six GCC countries, and this effect is found to be elastic in the case of all countries except for Kuwait. Positive effects of decreasing OP on the depletion are also found in all the GCC countries, and these effects are found to be elastic or unit elastic in the case of all countries except Saudi Arabia. Asymmetry in the relationship of oil price and energy depletion is established for Bahrain, Kuwait, and Saudi Arabia in terms of the different magnitude of effects.
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DOI: 10.3390/en13123058
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