Oil Price and Energy Depletion Nexus in GCC Countries: Asymmetry Analyses

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. W...

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Bibliographic Details
Published in:Energies (Basel) 2020-06, Vol.13 (12), p.3058
Main Authors: Alkhateeb, Tarek Tawfik Yousef, Mahmood, Haider
Format: Article
Language:English
Subjects:
Asymmetry
Cointegration analysis
Consumption
Crude oil prices
Depletion
elasticity analysis
Energy
energy depletion
Energy economics
Exports
Income distribution
Macroeconomics
Oil
oil price
Securities markets
Stock exchanges
Time series
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Summary: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.
ISSN:1996-1073
1996-1073
DOI:10.3390/en13123058