Economic development and energy consumption in Saudi Arabian economy: do globalization, financial development and capital accumulation matter?

IF 2.5 Q3 MANAGEMENT International Journal of Energy Sector Management Pub Date : 2023-12-15 DOI:10.1108/ijesm-07-2023-0026

Abdulkadir Abdulrashid Rafindadi, Aliyu Buhari Isah, O. Usman

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Abstract

Purpose This paper aims to empirically examine the impact of economic development and energy consumption in Saudi Arabia (the leading OPEC giant and the Arab energy icon country) between 1971 and 2015, whilst incorporating globalization, financial development and capital accumulation. Design/methodology/approach This study uses econometric tools and the analytical framework based on the autoregressive distributed lag (ARDL) model. Findings The study found that, unlike economic development, globalization and financial development increased energy consumption. Also, capital accumulation created a boost in the country’s energy consumption. Results of variance decomposition indicate that the innovative shocks in globalization and financial development affected energy consumption at the rates of 15.28% and 28.98%, respectively, over 15 years’ period, while shocks in capital accumulation affected energy consumption at a rate of only about 1.24%. In addition, the results of impulse response function show that globalization and economic development were highly responsive to shocks in financial development, and capital accumulation greatly spurred financial development. Research limitations/implications The findings of this study have implication for promoting an efficient and sustainable energy systems that enhance sustainable development based on the accrued benefits of globalization, financial development and capital accumulation. Originality/value Given the increasing level of globalization, financial development and energy consumption, our study uses econometric tools and the analytical framework based on the ARDL model to revisit how energy consumption is influenced by economic development in Saudi Arabia by incorporating other determinants of energy consumption such as globalization, financial development and capital accumulation. The results were validated based on the innovative accounting.

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沙特阿拉伯经济发展和能源消耗：全球化、金融发展和资本积累是否重要？

本文旨在实证研究 1971 年至 2015 年间沙特阿拉伯（欧佩克主要巨头和阿拉伯能源偶像国家）经济发展和能源消耗的影响，同时纳入全球化、金融发展和资本积累。此外，资本积累也促进了国家的能源消耗。方差分解结果表明，全球化和金融发展的创新冲击对 15 年间能源消耗的影响率分别为 15.28% 和 28.98%，而资本积累的冲击对能源消耗的影响率仅为 1.24%。此外，脉冲响应函数的结果表明，全球化和经济发展对金融发展的冲击反应灵敏，资本积累极大地促进了金融发展。原创性/价值鉴于全球化、金融发展和能源消耗水平的不断提高，我们的研究使用计量经济学工具和基于 ARDL 模型的分析框架，通过纳入能源消耗的其他决定因素（如全球化、金融发展和资本积累），重新审视沙特阿拉伯的能源消耗如何受到经济发展的影响。研究结果在创新核算的基础上得到了验证。

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来源期刊

International Journal of Energy Sector Management MANAGEMENT-

CiteScore

6.80

自引率

22.60%

发文量

期刊介绍： The International Journal of Energy Sector Management aims to facilitate dissemination of research on issues relating to supply management (covering the entire supply chain of resource finding, extraction, production, treatment, conversion, transportation, distribution and retail supply), demand and usage management, waste management, customer and other stakeholder management, and solutions thereto. The journal covers all forms of energy (non-renewable and renewable), forms of supply (centralised or decentralised), ownership patterns (public or private, cooperative, joint, or any other), market structures (formal, informal, integrated, disintegrated, national, international, local, etc.) and degress of commoditisation (e.g. internationally traded, regionally traded, non-traded, etc.). The journal aims to cover a wide range of subjects relevant to the management of the energy sector, including but not limited to: Management of scarce resources (economic, financial, human and natural), projects, activities and concerns (e.g. regulatory, social and environmental aspects), technologies and knowledge Business strategy, policy and planning as well as decision support systems for energy sector management Business organisation, structure and environment, and changes thereto Globalisation and multi-cultural management Management of innovation, change and transition.