The Economic Impact of Increasing International Dependence on Renewable Energy in Generating Energy on OPEC
International Journal of Economy, Energy and Environment
Volume 5, Issue 3, June 2020, Pages: 32-40
Received: Apr. 30, 2020; Accepted: Jun. 11, 2020; Published: Jun. 28, 2020
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Mosaad Mohamed Ismail Elgayish, Economics Department, Faculty of Politics & Economics, Beni-Suef University, Beni-Suef, Egypt
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The international dependence on renewable energy in the generation of energy has increased significantly, which stopped the researcher in studying the impact of this on OPEC countries that rely heavily on oil to form their revenues and economic capabilities. The researcher has noted that the demand for renewable energy to generate energy increased, especially during the period from 1990 to 2018, as the proportion of the contribution of renewable energy to power generation ranged between 15% in 1990 until it reached 23% in 2018, and at the same time it was observed that the rate of generation Energy from oil for the same period shrank from 13% in 1990 until it reached 3% in 2018 (according to data from the International Energy Agency) . The research assumed that increasing international dependence on renewable energy sources will negatively affect oil revenues for OPEC countries and limit global demand for Petroleum to generate energy in exchange for increased dependence on renewable energy, which reduces the oil revenues of OPEC countries have been relied on data of the World Bank and the International Energy Agency, and the multiple regression model was used to reach the variable most influencing the revenues of OPEC countries and reach the ratio of the impact of the use of renewable energy in generating energy on the revenues of OPEC countries. Until 52% of the changes that occurred in oil revenues in OPEC countries are caused by the price of a global barrel in dollars, while the impact of renewable energy on OPEC revenues was 30%. Accordingly, the research recommends that OPEC countries should strive not to rely entirely on oil as a main source of income - especially with the availability of an alternative from renewable energy in most of the OPEC countries - and that there has become a need to diversify the sources of income for OPEC countries and not rely entirely on one source of income.
Renewable Energy, OPEC, Extension, the Economic Impact
To cite this article
Mosaad Mohamed Ismail Elgayish, The Economic Impact of Increasing International Dependence on Renewable Energy in Generating Energy on OPEC, International Journal of Economy, Energy and Environment. Vol. 5, No. 3, 2020, pp. 32-40. doi: 10.11648/j.ijeee.20200503.12
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