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The Adoption of Renewable Energy Policies in a Rentier State The Adoption of Renewable Energy Policies in a Rentier State: A Case Study of the United Arab Emirates Hessa Murooshid College of Humanities and Social Sciences, Zayed University, Downloaded from http://meridian.allenpress.com/awg/article-pdf/21/1/43/1449051/1480-6800_21_1_43.pdf by guest on 26 September 2021 P.O. Box 19282 Dubai United Arab Emirates The United Arab Emirates (U.A.E.) represents a unique form of rentier state in the Gulf region, with its vast resources of oil and natural gas and its political and economic systems characterized by the exploitation and export of natural resources. The U.A.E. is a global leader in carbon dioxide emissions and pollution, but has recently begun to diversify its energy resources by establishing various renewable energy initiatives. This new strategy has involved new domestic policies that make important adjustments to the conventional fossil-fuel economic model. The main question addressed in this study is the following: What are the drivers that make a rentier state such as the U.A.E. adopt new policies to encourage alternative energy sources, given that its oil reserves are secured for almost the next 50 years? The study argues that current dynamics in the U.A.E. cannot be explained by rentier state theory but can be described as a post-rentierism moment, a phenomenon that did not emerge from a vacuum and will not last long. It is a transitional stage and a turning point in the complex development of a country that trying to use and benefit from the available opportunities and overcome any challenges. The results indicate that the adoption of new renewable energy policies by a pioneering rentier state such as the U.A.E. can best be explained by the policy transfer approach, at two levels: domestic growth policy and environmental consciousness and responsibility. Key Words: Rentier state, natural resources, alternative energy sources, domestic growth policy, United Arab Emirates The United Arab Emirates (U.A.E.) is considered typical of rentier states, as well as of the Gulf Cooperation Council (GCC) countries, which have vast oil and natural gas resources and whose political and economic systems are characterized by the exploitation and export of natural resources. The GCC countries are major oil producers and exporters, accounting for 24 % of global oil production and 11 % of global natural gas production (BP Statistical Review of World Energy 2014. Logically, these countries would place the sustainability of their economic and political systems above environmental sustainability, and would therefore tend not to invest in renewable energy systems. They are also global leaders in carbon dioxide emissions and pollution: Qatar in first place, Kuwait in third, the U.A.E. seventh, Oman eighth, Saudi Arabia ninth, and Bahrain tenth of 218 countries (World Bank 2015). The Arab World Geographer / Le Géographe du monde arabe Vol 21, no 1 (2018) 43-57 © 2018 Geo Publishing, Toronto Canada 44 Hessa Murooshid Although the U.A.E. is one of the highest polluters, as a rentier state, rich in oil and natural-gas resources, it would not be expected to shift its economy from fossil-fuel production and consumption to adopting renewable energy sources. In fact, however, the U.A.E. has begun already to diversify its energy resources by establishing and developing renewable energy projects over the past 10 years funded from oil revenues. The U.A.E. has signed and Downloaded from http://meridian.allenpress.com/awg/article-pdf/21/1/43/1449051/1480-6800_21_1_43.pdf by guest on 26 September 2021 ratified the International Renewable Energy Statute in order to increase the share of renewable energy in their energy resources (IRENA 2015). In the Emirate of Abu Dhabi, the Masdar Initiative is the main project currently developing renewable energy and eco-architecture and trans- portation (Seneviratne 2015). In Dubai, the second large city in the U.A.E., the government has implemented the Green Building Code, borrowed from the U.S. Green Building Council’s LEED certification system (Seneviratne 2015). There is no doubt that these initiatives will benefit the country in many ways: economically, more use of renewable energy will reduce domestic consumption of fossil fuels and allow an increase in exports of oil and gas; environmentally, the initiatives will contribute to reducing climate change and preparing the U.A.E. for the post-oil stage, as well as improve its international reputation. The U.A.E.’s engagement in developing renewable energy initiatives has involved new domestic policies that make adjustments to the conven- tional fossil-fuel economic model. The main questions addressed in this study is the following: What are the drivers that lead a rentier state like the U.A.E. to adopt new policies to encourage alternative energy sources despite being rich in fossil-fuel energy? That is, why would the U.A.E., an oil-rich country, begin to move towards a post-oil age while its oil reserves are still secure for nearly two-thirds of a century? To answer these questions, this article will first describe the renew- able energy potentials and initiatives in the U.A.E., then will try to explain the motivations behind the development of renewable energy systems in U.A.E. Theoretically, there are three main hypotheses that can explain the variation on energy policies in the U.A.E.: 1 the international and/or regional influences (or policy transfer) hypoth- esis, whereby policies are transferred from other countries into the focal country; 2 the domestic circumstances hypothesis, whereby new policies result from domestic political, economic, or social developments (also called endogenous growth); and 3 the environmental responsibility hypothesis, whereby new policies are developed as a result of ratifying international agreements such as the UN Framework Convention on Climate Change. The Arab World Geographer / Le Géographe du monde arabe Vol 21, no 1 (2018) The Adoption of Renewable Energy Policies in a Rentier State 45 This study uses the U.A.E. as a case study of a developing country that has adopted new policies for renewable energy, which may create challenges for the political leadership as a result of rentierism. The study’s main argument is that the adoption of renewable energy policies in the U.A.E. is the outcome of complex circumstances that can only be described as a post-rentierism moment. Downloaded from http://meridian.allenpress.com/awg/article-pdf/21/1/43/1449051/1480-6800_21_1_43.pdf by guest on 26 September 2021 Renewable Energy Potentials and Initiatives in the U.A.E. Like most MENA and GCC countries, the U.A.E. is extremely rich in renewable energy resources, such as solar energy, as well as in oil and natural gas. Despite potential renewable energy sources such as solar power, however, the country has not officially adopted renewables as alternative energy sources; traditional fossil fuels remain the dominant source of energy. The U.A.E. is one of the main members of the Organization of Petroleum Exporting Countries (OPEC) and, according to recent statistics, ranks sixth in oil reserves and fifth in the natural gas reserves, as well as being the third largest oil exporter Al-Amir and Abu- Hijleh 2013, 661), making it a potential producer and supplier in the energy market. The U.A.E. has taken only a few steps towards developing renewable energy projects, yet they are very efficient and remarkable programs. Based on the existing renewable energy projects, in fact, the U.A.E. is considered a regional leader in this field. Three main measures put U.A.E. at or near the top of the scale: (1) renewable energy systems and technolo- gies as a percentage of total energy use, which shows the level of energy diversification; (2) total amount of installed renewable energy technolo- gies, which reflects the level of readiness to diversify energy resources; and (3) total installed renewable energy technologies per capita, which shows how the population benefits from renewables. Although the intensity and total of renewable energy projects are low, total adoption per capita can be a positive projection of the future needs of the country. The U.A.E. produces approximately 0.55 % of its energy in the form of renewables such as concentrating solar power (CSP), photovoltaic solar power (PV), and wind power; total production from these sources is 134 MW, or 14 W per capita (Atalay et al. 2016). This proportion is very small relative to the production of traditional energy, yet it represents the region’s highest share of renewable energy intensity and adoption. Renewable Energy Potential in the U.A.E. The geography of the U.A.E. means that the potential for renewable energy is very likely to be developed. Based on some important studies recent studies The Arab World Geographer / Le Géographe du monde arabe Vol 21, no 1 (2018) 46 Hessa Murooshid of renewable energy potential in GCC countries (Gastli and Armendariz 2013; Al-Gobaisi et al. 2010; Renewable Energy Readiness Assessment Report 2012; Jeridi 2012; Alnaser and Alnaser 2009), this section highlights the two main sources of renewable energy sources in the U.A.E.: solar energy and wind energy. Solar Power Downloaded from http://meridian.allenpress.com/awg/article-pdf/21/1/43/1449051/1480-6800_21_1_43.pdf by guest on 26 September 2021 Based on annual insolation, the U.A.E. has one of the highest solar potentials in the region, and in the world. The country’s highest average global solar radiation (GSR) value is estimated at about 1 041 W/m2 per minute, 369 W/m2 per day, and 290 W/m2 per months; 18.48 MJ/m2/day is the direct normal irradiance (DNI) available to solar concentrating technologies (Islam et al.
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