Renewable Energy Transitions in Hydrocarbon-Rich Countries: The Effects of Political Institutions (Various Types of Democracy and Autocracy) and State Hydrocarbon Rent on Renewable Energy Policies

Najafi Marghmaleki, Amirhossein

Renewable Energy Transitions in Hydrocarbon-Rich Countries: The Effects of Political Institutions (Various Types of Democracy and Autocracy) and State Hydrocarbon Rent on Renewable Energy Policies

Najafi Marghmaleki, Amirhossein

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Publication Type:: Thesis
Issue Date:: 2023

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Field	Value	Language
dc.contributor.author	Najafi Marghmaleki, Amirhossein
dc.date.accessioned	2024-03-27T02:17:02Z
dc.date.available	2024-03-27T02:17:02Z
dc.date.issued	2023
dc.identifier.uri	http://hdl.handle.net/10453/177226
dc.description	University of Technology Sydney. Faculty of Arts and Social Sciences.	en_US.UTF-8
dc.description.abstract	Hydrocarbon resource wealth often leads to overreliance on hydrocarbon resource revenues (state hydrocarbon rents) and/or an unhealthy dependence on hydrocarbon-intensive industries, detrimental political and economic outcome of which are known as the resource curse. While the impact of democracy on the provision of environmental public goods is well studied, the link between democracy and renewable energy (RE) policy outcomes, such as RE deployment and its share in the energy mix, remains relatively unexplored. Additionally, there is a significant gap in understanding the interrelationships between hydrocarbon richness, and state hydrocarbon rents, and RE development. Transitioning towards a low-carbon future necessitates the meaningful involvement of hydrocarbon-rich countries. Therefore, it is crucial for academics and policy practitioners to comprehend the interconnections between different dimensions of democracy, the political and economic consequences of hydrocarbon wealth, state hydrocarbon rents, and RE development. This study adopted a mixed-method approach, combining quantitative regression modelling and qualitative case studies. The quantitative analysis utilized regression models, including the linear mixed model and 'within-between' estimations, to thoroughly investigate the effects and likely interactions of various independent variables on the share of solar and wind electricity in the electricity generation capacity and consumption. The independent variables included a novel measure of hydrocarbon richness, measures of different dimensions of democracy, state hydrocarbon rents, and other political, social, and economic factors. The qualitative component of the study comprised illustrative case studies of Algeria, Morocco, and Tunisia. The study broadly found empirical support for the long-term positive relationship between democracy and RE development, as well as a negative association between oil richness, state oil rent, and RE development. It also identified a strong Environmental Kuznets Effect (EKC) and highlighted the moderating effect of institutional qualities such as the rule of law and quality of government on the relationship between state oil rent and RE development. However, the study did not find a robust link between a country's vulnerability to climate risks and its RE potential or development. The findings demonstrate considerable robustness when modifying the sample composition and size, as well as when utilizing alternative measures of RE development. The case study analysis, re-examining the links between the independent variables and RE development in the context of the three countries, identified the positive effect of political stability and detrimental effect of hydrocarbon resource wealth—through energy subsidies—on RE development. The findings of the case study analysis broadly corroborate those of the quantitative analysis.	en_US.UTF-8
dc.format	Thesis (PhD)
dc.language.iso	en_US	en_US.UTF-8
dc.relation	https://opus.lib.uts.edu.au/bitstream/10453/177226/1/thesis.pdf
dc.rights	info:eu-repo/semantics/openAccess
dc.rights	The author owns the copyright in this thesis including all reproduction and reuse rights for the work. The work may not be altered without the permission of the copyright owner. Attribution is essential when quoting or paraphrasing from this thesis.
dc.rights	© 2023 Amirhossein Najafi Marghmaleki
dc.rights	au.edu.uts.lib/cph
dc.title	Renewable Energy Transitions in Hydrocarbon-Rich Countries: The Effects of Political Institutions (Various Types of Democracy and Autocracy) and State Hydrocarbon Rent on Renewable Energy Policies	en_US.UTF-8
dc.type	Thesis
utslib.copyright.status	open_access	*

Abstract:

Hydrocarbon resource wealth often leads to overreliance on hydrocarbon resource revenues (state hydrocarbon rents) and/or an unhealthy dependence on hydrocarbon-intensive industries, detrimental political and economic outcome of which are known as the resource curse. While the impact of democracy on the provision of environmental public goods is well studied, the link between democracy and renewable energy (RE) policy outcomes, such as RE deployment and its share in the energy mix, remains relatively unexplored. Additionally, there is a significant gap in understanding the interrelationships between hydrocarbon richness, and state hydrocarbon rents, and RE development. Transitioning towards a low-carbon future necessitates the meaningful involvement of hydrocarbon-rich countries. Therefore, it is crucial for academics and policy practitioners to comprehend the interconnections between different dimensions of democracy, the political and economic consequences of hydrocarbon wealth, state hydrocarbon rents, and RE development. This study adopted a mixed-method approach, combining quantitative regression modelling and qualitative case studies. The quantitative analysis utilized regression models, including the linear mixed model and 'within-between' estimations, to thoroughly investigate the effects and likely interactions of various independent variables on the share of solar and wind electricity in the electricity generation capacity and consumption. The independent variables included a novel measure of hydrocarbon richness, measures of different dimensions of democracy, state hydrocarbon rents, and other political, social, and economic factors. The qualitative component of the study comprised illustrative case studies of Algeria, Morocco, and Tunisia. The study broadly found empirical support for the long-term positive relationship between democracy and RE development, as well as a negative association between oil richness, state oil rent, and RE development. It also identified a strong Environmental Kuznets Effect (EKC) and highlighted the moderating effect of institutional qualities such as the rule of law and quality of government on the relationship between state oil rent and RE development. However, the study did not find a robust link between a country's vulnerability to climate risks and its RE potential or development. The findings demonstrate considerable robustness when modifying the sample composition and size, as well as when utilizing alternative measures of RE development. The case study analysis, re-examining the links between the independent variables and RE development in the context of the three countries, identified the positive effect of political stability and detrimental effect of hydrocarbon resource wealth—through energy subsidies—on RE development. The findings of the case study analysis broadly corroborate those of the quantitative analysis.

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