Fuel subsidy reform, decentralized electricity markets and renewable energy trade: evidence for a successful energy transition in the Middle East and North Africa Region

Tanya Leila Shaar, Rafael Leal-Arcas
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Abstract

The past few decades have witnessed widespread attempts by the international community to combat rising global temperatures. Without a doubt, instruments such as the Paris Agreement have proven essential in fighting climate change by promoting the use of renewable energy and energy transitions. Problematically, regions that rely heavily on fossil fuel consumption, such as the Middle East and North Africa (MENA) region, have struggled in undertaking their energy transitions and decarbonizing their economies. As such, this article aims to discuss the evidence for a widespread energy transition in the MENA region via economic, legal and social reforms. This article argues that to achieve a successful energy transition in the region, the removal of fuel subsidies must occur, the decentralization of energy markets promoted and renewable trade incentivized. It suggests that fossil fuel exporting MENA countries should continue to diversify their economies in order to reduce reliance on their energy sectors. In turn, this will enable them to undertake fossil fuel subsidy reforms and invest money into renewable energy projects uninterruptedly. To add to this, MENA countries should look to decentralize their energy markets to reduce their reliance on fossil fuels for energy production. Decentralized solar energy, in specific, has extensive potential in the region and would enable a transition toward energy self-sufficiency. This article then concludes that trade practices and climate mitigation are mutually exclusive, and proposes recommendations on how the World Trade Organization can be used to better promote energy transitions.
燃料补贴改革、分散的电力市场和可再生能源贸易:中东和北非地区能源转型成功的证据
在过去的几十年里,国际社会为应对全球气温上升做出了广泛的努力。毫无疑问,《巴黎协定》等文书已经证明,通过促进可再生能源的使用和能源转型,对应对气候变化至关重要。问题是,严重依赖化石燃料消费的地区,如中东和北非(MENA)地区,在进行能源转型和经济脱碳方面一直举步维艰。因此,本文旨在讨论中东和北非地区通过经济、法律和社会改革实现广泛能源转型的证据。本文认为,要在该地区实现成功的能源转型,必须取消燃料补贴,促进能源市场的分散化,并激励可再生能源贸易。报告建议,中东和北非地区出口化石燃料的国家应继续实现经济多样化,以减少对其能源部门的依赖。反过来,这将使它们能够不间断地进行化石燃料补贴改革,并向可再生能源项目投资。除此之外,中东和北非国家应该寻求分散其能源市场,以减少对化石燃料能源生产的依赖。具体地说,分散的太阳能在该区域具有广泛的潜力,能够过渡到能源自给自足。本文随后得出结论,贸易实践和减缓气候变化是相互排斥的,并就如何利用世界贸易组织更好地促进能源转型提出了建议。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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