9 GOVERNANCE AMID THE TRANSITION TO RENEWABLE …
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consumption), but to the long-term goal of making the UAE a regional
hub capable of becoming a major exporter of renewable energy services
and technical knowledge. In oil-poor Jordan and Morocco, renewable
energy will provide the means to escape from energy shortages and a
heavy reliance on imports for total energy consumption—96% in Jordan
and 95% in Morocco. In war-torn Yemen, renewable energy is crucial
in providing energy access; as of 2019, the country’s current generation
capacity can only satisfy one-third of its demand.
What explains this variation? And what do these different choices imply
for domestic and international politics? In this chapter, we draw on political economy theories to explore the transition from conventional energy
to renewable energy in the MENA region. We first establish the theoretical framework in the context of the resource curse hypothesis and the
theory of the rentier state. We then apply this framework to provide
implications for the transition from conventional to renewable energy.
Here, we build an argument that the renewable energy transition will
diffuse existing and future societal pressures by increasing youth employment, hindering corruption, and reducing fiscal volatility. Compared to
the concentrated political economy of petroleum-reliant states, we argue
that the up and coming renewables sector provides an opportunity for
these states to broaden and diversify their sources of economic and international political power. We conclude with a set of potential scenarios
drawn from best practices in the region to reduce dependence on fossil
fuels.
Political Implications
of Conventional Energy Resources
Theory of the Rentier State
‘No representation without taxation.’ This reversal of the American Revolution’s byword is the core of the idea that natural resources such as
oil and gas hinder democratic governance. In contrast to taxing its citizens to finance state expenditures, a ‘rentier state’—defined as a state
which generates income by collecting an external rent, such as the sale of
petroleum and minerals—has no need for taxing the income of its citizens.
As such, rentier states are not dependent on the complicity of their citizens when making fiscal decisions. Instead, according to the rentier state
theory, this type of state plays a provisory role, whereby leaders purchase
239
consumption), but to the long-term goal of making the UAE a regional
hub capable of becoming a major exporter of renewable energy services
and technical knowledge. In oil-poor Jordan and Morocco, renewable
energy will provide the means to escape from energy shortages and a
heavy reliance on imports for total energy consumption—96% in Jordan
and 95% in Morocco. In war-torn Yemen, renewable energy is crucial
in providing energy access; as of 2019, the country’s current generation
capacity can only satisfy one-third of its demand.
What explains this variation? And what do these different choices imply
for domestic and international politics? In this chapter, we draw on political economy theories to explore the transition from conventional energy
to renewable energy in the MENA region. We first establish the theoretical framework in the context of the resource curse hypothesis and the
theory of the rentier state. We then apply this framework to provide
implications for the transition from conventional to renewable energy.
Here, we build an argument that the renewable energy transition will
diffuse existing and future societal pressures by increasing youth employment, hindering corruption, and reducing fiscal volatility. Compared to
the concentrated political economy of petroleum-reliant states, we argue
that the up and coming renewables sector provides an opportunity for
these states to broaden and diversify their sources of economic and international political power. We conclude with a set of potential scenarios
drawn from best practices in the region to reduce dependence on fossil
fuels.
Political Implications
of Conventional Energy Resources
Theory of the Rentier State
‘No representation without taxation.’ This reversal of the American Revolution’s byword is the core of the idea that natural resources such as
oil and gas hinder democratic governance. In contrast to taxing its citizens to finance state expenditures, a ‘rentier state’—defined as a state
which generates income by collecting an external rent, such as the sale of
petroleum and minerals—has no need for taxing the income of its citizens.
As such, rentier states are not dependent on the complicity of their citizens when making fiscal decisions. Instead, according to the rentier state
theory, this type of state plays a provisory role, whereby leaders purchase