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

Tarek Tawfik Yousef Alkhateeb and Haider Mahmood ()
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Tarek Tawfik Yousef Alkhateeb: College of Business Administration, Prince Sattam bin Abdulaziz University, P.O. Box 173 Al-Kharj 11942, Saudi Arabia

Energies, 2020, vol. 13, issue 12, 1-13

Abstract: 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.

Keywords: oil price; energy depletion; asymmetry; elasticity analysis (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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