From Economic to Extrinsic Values of Sustainable Energy: Prestige, Neo-Rentierism, and Geopolitics of the Energy Transition in the Arabian Peninsula

Abstract

Energy transition in the region of the Gulf Cooperation Countries (GCC) has recently commenced and is now being implemented through large-scale renewable projects, nuclear plants, and energy efficiency measures in the built environment. This paper highlights how alternative energies are associated with non-economic factors such as prestige, modernity, and (soft or symbolic) power. It analyzes the specific ways of delivering energy diversification in the Gulf through renewable megaprojects, the reorganization of the energy sector, and the incorporation of nuclear energy as an add-on source. These decisions serve GCC states in showcasing modernity, maintaining centralized control, posturing geopolitically, and extending the rent distribution mechanisms. On one hand, the energy transition in the Gulf has been domesticated through policies and strategies suiting the political systems in the region. This can have an acceleration effect on this transition. On the other hand, the implications of the adaptation of the energy transition to the reality of the Gulf remain open. The success of this transition will depend on the ability of GCC states to ecologically modernize the Gulf societies, reduce environmental risks, and enhance GCC-wide cooperation.