The Journal of Energy and Development

volume 39, number 1, autumn 2013 (copyright 2014)
Mohammed A. Al-Sahlawi and Øystein Noreng, “A Century after Sykes-Picot: Restructuring the
Middle East Through Iraq, Kurdistan, and the Arab Spring,” The Journal of Energy and
Development, volume 39, number 1 (autumn 2013, copyright 2014), pp. 1–52.
The First World War left a legacy in the Middle East state configuration that, after ten decades, is
crumbling. The disintegration of the Ottoman Empire resulted in a fragmented region and a number of
unsettled issues that continue to this day with control of the region’s oil still a critical factor. This paper
looks at the linkages and interplay among oil and gas development, foreign policy, and geopolitics in
shaping the events on the ground in the Middle East for the past century and presents an array of possible
scenarios for the future. Several key drivers of change are discussed including the ramifications of the
Arab Spring, the salience of oil in Middle East development, Turkey’s re-entry into Mideast politics as a
major player, the movement toward Kurdish autonomy, the destabilization of both Iraq and Syria, the
Israeli-Palestinian conflict, the impacts of an isolated Iran, and how instability has affected foreign energy
interests in the region.

Keywords: Middle East geopolitics, Iraq, Kurdistan, Syria, energy, oil and gas development, Arab
Spring, Saudi Arabia, Turkey, Iran, Israel, Islamic State, Sykes-Picot
Hassen Guenichi, “World Oil Prices, Energy Use, and Economic Growth Sectors: Relationships in
Tunisia,” The Journal of Energy and Development, volume 39, number 1 (autumn 2013, copyright
2014), pp. 53–72.

The current study examines the relationship among the world oil price, energy use, and the economic
growth sectors in a developing country—Tunisia—by means of a univariate unit root test and
cointegration analysis with two predetermined structural breaks. Results of the study indicate that world
oil prices negatively impact industrial growth but have a limited effect on the two other sectors—
agriculture and services. The agricultural sector is slightly affected due to government subsidies and the
services sector also is slightly influenced by a surge in world oil price thanks to the development of some
subsectors such as tourism, telecommunication, etc. The results indicate that all Tunisian economic
sectors are influenced by energy consumption, especially over the 10-year span of 1995–2005. Finally,
we conclude that energy use and world oil price have negative effects on Tunisian economic growth,
which contradicts the neoclassical assumption that energy is neutral to the growth.
Keywords: energy, oil prices, economic growth, structural changes, Tunisia, cointegration analysis, unit
root tests

Henri Atangana Ondoa and Achille Jean Baptiste Nsoe Nkouli, “The Effects of Regulatory
Agencies of Sub-Saharan Electricity Companies on Social Welfare,” The Journal of Energy and
Development, volume 39, number 1 (autumn 2013, copyright 2014), pp. 73–94.
In this study, we assess the effects of independent regulatory agencies (IRAs) on social welfare in 17
African countries for the period 2000–2010, with the data from the Association of Power Utilities of
Africa (APUA) and the World Bank. Two main methods have been used: descriptive analysis and
econometric analysis. The results show that the effects of regulatory agencies on social welfare are
negative. Indeed, the electrification rates are relatively low in countries that have created IRAs. In
addition, the quality of service is improving slowly in these countries while it is improving at higher rates
in other nations. It also should be noted that the price of electricity is relatively high in countries that
have IRAs. Reforms like regional integration and control of corruption can improve social welfare in the
electricity sector. Moreover, the creation of IRAs should be coupled with an increase of competition in
electricity markets.
Keywords: Africa, electricity, regulation, welfare, Angola, Benin, Botswana, Cameroon, Republic of
Congo, Côte d’Ivoire, Ethiopia, Gabon, Ghana, Kenya, Mozambique, Nigeria, Senegal, Sudan, Togo,
Zambia, Zimbabwe
Irene M. Xiarchos, Chali Nondo, and Mulugeta S. Kahsai, “Renewable Energy and Economic
Growth in U.S. States: A Panel Dynamic Approach,” The Journal of Energy and Development,
volume 39, number 1 (autumn 2013, copyright 2014), pp. 95–117.
This study investigates the relationship between energy investment, economic growth, and job creation
and how it differs for conventional and renewable energy. Although the literature for energy consumption
and growth is rich, this study is the first attempt to quantify the direction of causality between renewable
energy investment and employment at the regional level in the United States. Recent increases in
renewable energy investment in spite of the recession underlines the importance of understanding the
links of renewable energy investment with growth and job creation. Using data from the 48 U.S.
contiguous states plus the District of Columbia for 1997–2009, we find (a) the presence of a long-run
unidirectional relationship from investment in renewable energy capacity to gross domestic product
(GDP), (b) a two-way long-run causal relationship between fossil energy and real GDP, (c) a
unidirectional short- and long-run causality from renewable energy to employment, and (d) unidirectional
causality from employment to fossil energy in the long run.
Keywords: renewable energy investment, employment, GDP growth, panel causality tests, energyeconomic growth causality, U.S. states
J. C. Whorton, Jr. and John Whorton, “Reinventing the West: The Role of Its Natural Resources in
the 21st Century,” The Journal of Energy and Development, volume 39, number 1 (autumn 2013,
copyright 2014), pp. 119–143.

This paper examines how the American West is reinventing itself and the role of natural resources in
this process. There is a tug of war going on in the West over the development of natural resources on
public lands, which the authors examine in looking at the myths of the new economy versus the realities
of the old economy. The authors argue that the West may very well become the casebook study for the
rest of the world; as the ultimate balance of its policies, planning, and action will determine this “tug of
war’s” final outcome. The authors discuss how the recent expansion of the oil and gas industry in the
United States resulting from increased production and lower prices has created significant economic
growth, employment, and greater energy independence for the country. The paper also touches on the role
that shale gas and tight oil have played in this energy revolution. Four themes are addressed that are
crucial to understanding the issues affecting the reinvention of the American West: urban encroachment
into rural areas, access to and responsible use of water, environmentally sound extraction and
transportation of resources, and the financial and political effects of split-estate law.
The authors argue that, just as its vast lands are needed for agricultural sustainability to feed its
growing population, the West’s finite natural resources are the critical key to providing the required
energy for its future. Unfortunately, both need the same limited resource of water, as do its growing urban
centers. In resolving this festering competition, the region must produce a viable plan that can re-define
and revitalize itself, launching from its past and present outpost status to a predominant role on a par with
the more populated East and West Coasts. This plan may very well serve as a blueprint for Canada,
Mexico, China, and other countries that face many of the same issues now and in the coming years.
Keywords: American West, natural resource development, shale oil and gas, public lands, U.S. energy
independence, tight oil, fracking, Bureau of Land Management, split-estate law, water usage, urban
encroachment, environmentally sound energy extraction