Low-carbon energy in the Gulf: Upending the rentier state?

Abstract

Highlights Low-carbon energy projects have minimal impact on revenue volatility, jobs, and the private sector. The increasing uptake of low-carbon energy faces little resistance from existing stakeholders. Low-carbon energy will prolong rentier states in the Gulf.

The Geopolitics of The Global Energy Transition and its Implications on The Arab Gulf Region: A Review

“…(World Bank, 2019) Overall, many previous studies have indicated that the continuous transition of the energy system to a low-carbon one will have far-reaching geopolitical implications for petrostates, such as the Arab Gulf monarchies, but few have examined the internal implications of this global energy transition on the internal rentier arrangements. So, a recent study by (Sim, 2020) rather than focusing on the external geopolitical implications of the global energy transition on the GCC, has investigated how the growing use of energy sources with lower levels of carbon emissions in the Gulf may help minimize the effects of the fossil fuel "resource curse" that is most visible in and applicable to this region. The paper's main point is that the deployment of low-carbon energy is unlikely to solve the difficulty of non-oil diversification, which manifests itself in three 'curses,' namely, revenue volatility, job losses, and a weak private sector.…”

The geopolitics of energy system transformation: A review

“…A significant body of research addresses this so-called 'resource curse' , especially as it relates to oil (Colgan, 2013;Ross, 2012;van der Ploeg, 2011). However, only limited academic effort has been dedicated to contemplating the implications of high-carbon transitions for these economies' resource endowments (Bradley et al, 2018;Friedrichs & Inderwildi, 2013;Sim, 2020;Sinn, 2012). For example, an authoritative review article on the 'resource curse' did not mention its relation to EST (Ross, 2015).…”

From Economic to Extrinsic Values of Sustainable Energy: Prestige, Neo-Rentierism, and Geopolitics of the Energy Transition in the Arabian Peninsula

“…The energy sector reforms in the GCC represent a renovation of the rent distribution mechanisms while guaranteeing the continuation and the evolvement of the rentier state mentality [4,5,29]. Sim [51] saw, alongside public jobs, additional rent channels through the export of low-carbon electricity. Overall, the restructure of the energy sector cements the centralized control and state dominance over the energy sector with minimal impact on the private sector, while it can jeopardize market-based reforms or an effective carbon regulation [49,51].…”

“…Sim [51] saw, alongside public jobs, additional rent channels through the export of low-carbon electricity. Overall, the restructure of the energy sector cements the centralized control and state dominance over the energy sector with minimal impact on the private sector, while it can jeopardize market-based reforms or an effective carbon regulation [49,51]. The new approach of extending the rentier states through new means does not comply with the appeals for a new social contract through less distortionary systems (e.g., a more targeted welfare system, or even other reform ideas such as unconditional cash grants) [50].…”