Political instability, oil price shocks, energy crisis and income inequality in Pakistan

Pakistan has an energy deficient economy with unstable political and governance systems. This unstable system and prevalent ad-hoc practices have incapacitated the energy sector in multifarious aspects such as weakening the energy infrastructure, maintaining an irrational energy mix, and compounding...

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Main Author:	Hussain, Jibran
Format:	Thesis
Language:	eng eng
Published:	2020
Subjects:	HB Economic Theory
Online Access:	https://etd.uum.edu.my/10350/1/permission%20to%20deposit-grant%20the%20permission-902641.pdf https://etd.uum.edu.my/10350/2/s902641_01.pdf
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spelling	my-uum-etd.103502023-03-01T04:21:03Z Political instability, oil price shocks, energy crisis and income inequality in Pakistan 2020 Hussain, Jibran Hassan, Sallahuddin School of Economics, Finance & Banking School of Economics, Finance and Banking HB Economic Theory Pakistan has an energy deficient economy with unstable political and governance systems. This unstable system and prevalent ad-hoc practices have incapacitated the energy sector in multifarious aspects such as weakening the energy infrastructure, maintaining an irrational energy mix, and compounding circular debt. As a result, the country remains under persistent energy deficiency and is subjected to asymmetries and shocks of oil prices, which are contributing factors to ongoing socioeconomic disparities. The objective of this study is to investigate the direct and indirect effects of political instability on the energy crisis, to determine the asymmetric role and shocks of oil prices in causing the energy crisis, and to investigate the impact of the energy crisis on income inequality. The linear and nonlinear Autoregressive Distributed Lag and Dynamic Ordinary Least Squares, for the time series data from 1971 to 2016, are employed in the empirical analysis. The results show that the improvement in political stability and asymmetric negative oil prices have decreased the energy crisis, whereas the political instability, positive oil prices, and oil price shocks have deteriorated the energy crisis. The increasing energy crisis escalates income inequality. Sustainability in the regime, as well as policy switching, is a necessary condition for political and government stability. Stable energy governance is essential in reducing energy crisis. In addition, a drastic policy shift from import dependency to an optimal indigenous energy mix, such as hydro, coal, nuclear and gas is mandatory to mitigate the impact of asymmetries of oil prices and shocks. Finally, the sustainable energy policy for ensuring the affordable energy supply to the lower and middle-income groups is necessary to reduce income inequalities. 2020 Thesis https://etd.uum.edu.my/10350/ https://etd.uum.edu.my/10350/1/permission%20to%20deposit-grant%20the%20permission-902641.pdf text eng staffonly https://etd.uum.edu.my/10350/2/s902641_01.pdf text eng public other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Hassan, Sallahuddin
topic	HB Economic Theory
spellingShingle	HB Economic Theory Hussain, Jibran Political instability, oil price shocks, energy crisis and income inequality in Pakistan
description	Pakistan has an energy deficient economy with unstable political and governance systems. This unstable system and prevalent ad-hoc practices have incapacitated the energy sector in multifarious aspects such as weakening the energy infrastructure, maintaining an irrational energy mix, and compounding circular debt. As a result, the country remains under persistent energy deficiency and is subjected to asymmetries and shocks of oil prices, which are contributing factors to ongoing socioeconomic disparities. The objective of this study is to investigate the direct and indirect effects of political instability on the energy crisis, to determine the asymmetric role and shocks of oil prices in causing the energy crisis, and to investigate the impact of the energy crisis on income inequality. The linear and nonlinear Autoregressive Distributed Lag and Dynamic Ordinary Least Squares, for the time series data from 1971 to 2016, are employed in the empirical analysis. The results show that the improvement in political stability and asymmetric negative oil prices have decreased the energy crisis, whereas the political instability, positive oil prices, and oil price shocks have deteriorated the energy crisis. The increasing energy crisis escalates income inequality. Sustainability in the regime, as well as policy switching, is a necessary condition for political and government stability. Stable energy governance is essential in reducing energy crisis. In addition, a drastic policy shift from import dependency to an optimal indigenous energy mix, such as hydro, coal, nuclear and gas is mandatory to mitigate the impact of asymmetries of oil prices and shocks. Finally, the sustainable energy policy for ensuring the affordable energy supply to the lower and middle-income groups is necessary to reduce income inequalities.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Hussain, Jibran
author_facet	Hussain, Jibran
author_sort	Hussain, Jibran
title	Political instability, oil price shocks, energy crisis and income inequality in Pakistan
title_short	Political instability, oil price shocks, energy crisis and income inequality in Pakistan
title_full	Political instability, oil price shocks, energy crisis and income inequality in Pakistan
title_fullStr	Political instability, oil price shocks, energy crisis and income inequality in Pakistan
title_full_unstemmed	Political instability, oil price shocks, energy crisis and income inequality in Pakistan
title_sort	political instability, oil price shocks, energy crisis and income inequality in pakistan
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2020
url	https://etd.uum.edu.my/10350/1/permission%20to%20deposit-grant%20the%20permission-902641.pdf https://etd.uum.edu.my/10350/2/s902641_01.pdf
_version_	1776103797440905216

Political instability, oil price shocks, energy crisis and income inequality in Pakistan

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