Economic Ramifications of Energy Transition Investments in the Arab Gulf States

The analysis was performed by increasing the investments and value added – required for the energy transition – in the oil, gas, petrochemical, and power sectors to assess the macroeconomic impact on the remaining sectors. [...] The commonly suggested benefits of the energy transition would involve the gross domestic product (GDP) growth through raised investments in clean technologies, increased consumer expenditure due to tax rate changes, and the creation of new businesses and job opportunities.1 On the other hand, some reports noted the high cost of the energy transition to net zero, which could be a burden on the eco. [...] This information is useful to clarify and rationalize the impact of energy transition investments in the sectors of Electricity and water (EW), Mining and Quarrying (MNQ), and Oil, Gas and refining on the remaining eight sectors in the analysis in a later section. [...] $1 – the output and input multipliers of a sector, j, OMj and IMj, respectively, are determined using the Leontief and Ghosh inverse matrices, L, G, as follows, 𝑂𝑀$ = ∑"#8! 𝑙#$ ,and 𝐼𝑀 "$ = ∑#8!𝑔$# , Where lij is the element in the i-th row and j-th column of the L matrix, and gji is the element in the j-th row and i-th column in the G matrix. [...] The impact of 1% final demands increase in the EW, MNQ and OGR sectors is noticed the most on the value added and output production of EDH sector.