Conference Paper
The Role of Institutional Factors in Shaping the Relationship between Economic Policy Uncertainty and Energy Consumption in Gulf Countries: An Empirical Analysis
No.
ERF30_135
Publisher
ERF
Date
March, 2024
The main objective of this paper is to examine how institutional factors mediate the impact of Economic Policy Uncertainty (EPU) on energy consumption in Gulf countries. Using the dynamic Panel Autoregressive Distributed Lag (PARDL) method, over a period stretching from 1996 to 2021, we found that, only in the long term, EPU has a positive and significant impact on energy consumption, suggesting that increased EPU leads to increased energy use. Furthermore, we found that, only in the long term, government effectiveness and regulatory quality have positive and significant effect on energy consumption. Accordingly, the two institutional factors play a moderating role of the EPU-energy consumption nexus. These findings have profound policy implications, highlighting the importance of considering the time dimension when formulating energy and economic policies in Gulf countries. Policymakers should take into consideration the nature of these relationships to make informed decisions that promote energy efficiency and economic stability in the region.
Authors
Hadil Hnainia
Ph.D. student in Economics, ESCT-BusinessSchool, Manouba University,
Research Fellows
Sami Mensi
Professor of Economics at ESCT Business School...