This study explores the impact of political stability on the United Arab Emirates' (UAE) sustainable energy transition. It highlights how political stability enables long-term planning, policy continuity, investment attraction, and public acceptance of renewable energy. The study employed quantitative methodology, using the Phillips-Perron (PP) unit root test for stationarity assessment, the Autoregressive Distributed Lag (ARDL) cointegration test to confirm long-term relationships, and the Fully Modified Ordinary Least Square (FMOLS) technique proposed by Phillips and Hansen to investigate the relationships between the variables in the empirical model. The findings emphasize a positive correlation between political stability and the UAE's progress in diversifying its energy mix and embracing renewable sources. The research underscores the significance of political stability as a catalyst for a sustainable energy transition.
TopIntroduction
In response to the anticipated impact of global warming and the accelerated depletion of fossil fuels, governments worldwide have been driven to pursue the development of robust and sustainable energy infrastructures. This imperative has led to a widespread shift away from reliance on traditional energy resources, prompting governments to diversify their economies (Mezher, Dawelbait, & Abbas, 2012).
The United Arab Emirates (UAE) has embarked on an extraordinary path towards achieving a sustainable energy future. Recognizing the need to decrease dependence on fossil fuels, the UAE has made significant efforts to embrace renewable energy sources (Murooshid, 2018). The successful transition towards a sustainable energy system relies not only on technological advancements and economic considerations but also on the crucial factor of political stability.
Political stability plays a pivotal role in providing a conducive environment for long-term planning, policy implementation, and investment in renewable energy infrastructure. The strategy aims to position the economy at the forefront of global competitiveness. By prioritizing the development of renewable energy and sustainable practices, the UAE seeks to enhance its economic standing in the global economy. This strategy not only addresses environmental concerns but also recognizes the potential economic benefits and opportunities that arise from being a leader in the renewable energy sector (Al-Maamary, Kazem, & Chaichan, 2017).
The ambitious sustainable energy goals of the UAE necessitate a supportive environment that fosters long-term investments, policy continuity, and firm commitment from the government. It is crucial for the UAE to provide a stable and predictable framework that encourages both domestic and foreign investments in renewable energy projects. By ensuring policy consistency and demonstrating a steadfast dedication to sustainable energy initiatives, this could further assist the UAE to attract the necessary resources and expertise to achieve RE goals effectively (Poudineh, Sen, & Fattouh, 2018).
Studies have indicated that the UAE is among the countries with the highest carbon emissions and fossil fuel burning rates (Hassan Jamil Al Farra, 2012). These emissions and burning rates are primarily attributed to the significant reliance on fossil fuels for energy production, transportation, and industrial sectors. However, it's important to note that the UAE has recognized this challenge and has been taking proactive measures to address it. Through initiatives such as diversifying its energy mix, investing in renewable energy projects, and implementing energy efficiency measures, the UAE aims to reduce its carbon footprint and transition towards a more sustainable and low-carbon future (Murooshid, 2018). As a consequence of this circumstance, the UAE has acquired membership in both OPEC and OPEC+. Consequently, there arises a necessity to focus on the development of renewable energy infrastructure.
In recent years, the UAE government has demonstrated its commitment to environmental sustainability by establishing an ambitious Net-Zero initiative to be achieved by 2050, aligning with the goals of the Paris Agreement. To drive the transition towards a greener economy, the government has leveraged its resources, including sovereign wealth funds like Mubadala, as well as entities like Abu Dhabi National Oil Company and Abu Dhabi National Energy Company, PJSC (TAQA). Notably, the creation of Masdar, an innovative company dedicated to renewable energy development, has played a crucial role in advancing the government's efforts to achieve the target of 50GW of renewable energy capacity by 2030 (United Arab Emirates Embassy Wadhington DC, 2023).
The RE system can only be implemented through the cohesive support of both unified political and economic forces from the federal government. Findings from previous research proposes effective legislative amendments, provision of adequate inducements to finance renewable energy projects, development of green energy generation quotas and policy framework for energy management (Saidur, Islam, Rahim, & Solangi, 2010). The successful adoption of renewable energy (RE) infrastructure goes beyond the sole reliance on political stability and regulation. It encompasses various factors, including tariffs, price mechanisms, Behavioral intentions, and the acceptance of users and adopters of Renewable Energy. These elements play pivotal roles in ensuring the widespread implementation and acceptance of Renewable Energy (Sovacool, 2016).