Topics in Middle Eastern and North African Economies

Document Type

Article

Publication Date

9-1-2023

Abstract

The evaluation of the role of energy efficiency in addressing climate change is paramount, given the concerns about the ongoing global warming. This study delves into the impact of energy efficiency on carbon intensity within Saudi Arabia’ decarbonization and examines its potential contributions to the nation's ambitious net-zero emissions target. Analyzing a time series of data from 1971 to 2020 and employing a quantile regression model, our findings underscore the critical significance of energy efficiency in mitigating GHG emissions, emphasizing the necessity of harnessing this tool to expedite the decarbonization process. Notably, the model remains robust, even when accounting for variations in the proxy used to measure energy efficiency, affirming its effectiveness in combatting environmental degradation in Saudi Arabia. Furthermore, our findings reveal that energy efficiency exerts a more substantial influence on carbon intensity within the twenty-fifth to seventy-fifth quantiles, compared to the tenth and ninetieth quantiles. Recognizing these distinct effects across carbon intensity quantiles is imperative when shaping Saudi Arabia's decarbonization objectives. In an extension of our analysis, we project carbon intensity trends through 2060 under a scenario where energy efficiency experiences enhancement. The results indicate that energy efficiency improvements could contribute to up to one-fifth of Saudi Arabia's decarbonization efforts by 2060. The findings underscore the pivotal role of energy efficiency in fostering climate stability and crafting a more promising future.

Journal Title

Topics in Middle Eastern and North African Economies

ISSN

2334-282X

Publisher

Middle East Economic Association and Loyola University Chicago

Volume

25

Issue

2

Comments

Presentation of the articles in the Topics in Middle Eastern and North African Economies was made possible by a limited license granted to Loyola University Chicago and Middle East Economics Association from the authors who have retained all copyrights in the articles.

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Included in

Economics Commons

Share

COinS