Global commitment towards sustainable energy

Energy is crucial to economic and social development and improves quality of life. However, fossil fuel energy produces greenhouse gases (GHGs) and cannot be sustained for a long time. It is essential to tackle these problems by moving towards renewable and sustainable energy. Some countries, including those in the Arabian Gulf region, are still in the appraisal stage of adopting different forms of renewable energy. This paper reviews the business potential and likely GHG reductions associated with adopting renewable energy in Oman. It is revealed that 1·9 Mt of annual carbon dioxide emissions could be cut by producing 10% of the country’s electricity from renewables. The paper further discusses the global sustainable energy commitment under the UN Framework Convention on Climate Change and reviews the 2030 targets of some countries that are high producers of GHGs. It is anticipated that if all these planned targets are achieved, the total sustainable energy contribution could grow by nearly 11 000 TWh by 2030. These plans provide guidance for those countries still preparing to submit their plans to the UN

Do Free Trade Agreements Actually Increase Members' International Trade?

For more than forty years, the gravity equation has been a workhorse for cross-country empirical analyses of international trade flows and, in particular, the effects of free trade agreements (FTAs) on trade flows. However, the gravity equation is subject to the same econometric critique as earlier cross-industry studies of U.S. tariff and nontariff barriers and U.S. multilateral imports: Trade policy is not an exogenous variable. The authors address econometrically the endogeneity of FTAs using instrumental-variable (IV) techniques, control-function (CF) techniques, and panel-data techniques; IV and CF approaches do not adjust for endogeneity well, but a panel-data approach does. Accounting econometrically for the FTA variable’s endogeneity yields striking empirical results: The effect of FTAs on trade flows is quintupled