Environmental Economics
Mohamed Alamin
Exploring the potential for Carbon trading ...

Carbon Emissions and their relation to climate change are significant and have large societal and economic impacts globally. This has led to ambitious plans worldwide to promote decarbonisation and move away from fossil fuels as a primary energy source, including the GCC countries, with the example of Bahrain and Saudi Arabia pledging to go “carbon neutral” by 2060. This article intends to explore how a carbon trading scheme can help the GCC achieve its “carbon neutrality” status. We explore the following: First, what is a carbon-trading scheme, and what evidence exists of its effectiveness around the world, secondly, we explore the current state of GCC emissions and what these emissions could mean towards the region. Last, we look at the implications of continuous unchecked GCC emissions for the region, and what policy recommendations we can implement to counteract them.

Exploring the potential for Carbon trading schemes in the GCC
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Bahrain's tourism segment and its prospects

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Bahrain's tourism segment and its prospects

The travel & tourism segment has become one of the key contributors to the global economy in recent years. Before Covid-19, travel & tourism accounted for 10.3% of the global GDP and was worth over USD 9 trillion (World Travel and Tourism Council, 2019). One out of four newly created jobs stemmed from this segment in 2019. (World Travel and Tourism Council, 2019).

Consequently, Bahrain aims to become a major tourism hub in the region. The Kingdom seeks to implement strategies and policies to boost its tourism segment, provide a competitive edge, and stimulate the local economy. This will create more jobs and diversify economic activity even further away from hydrocarbon-based activities.

In this article, we will assess the current scenario of Bahrain's tourism segment and discuss potential challenges that may impact the prospects of local tourism in the future. This article will be divided into the following sections: An overview of Bahrain's tourism segment, An analysis of the current tourist portfolio, and a discussion plus policy recommendations.

Is Bahrain experiencing "excess" inflation?

Is Bahrain experiencing "excess" inflation?

Since the beginning of the year, the world has experienced rapid and persistently high inflation rates. Some countries, such as the United Kingdom, are estimated to have inflation rates of 18% by Citibank in early 2023 (Schomberg and Miliken, 2022). Such figures for developed nations are rather high, especially compared to their historical trends, where long-run inflation in the UK is approximately 2.6% (Keane, 2022). As inflation rates across multiple developed and developing nations remain high, is Bahrain experiencing a similar trend of high inflation rates compared to its trends?

Exploring the potential for Carbon trading schemes in the GCC

Exploring the potential for Carbon trading schemes in the GCC

Carbon Emissions and their relation to climate change are significant and have large societal and economic impacts globally. This has led to ambitious plans worldwide to promote decarbonisation and move away from fossil fuels as a primary energy source, including the GCC countries, with the example of Bahrain and Saudi Arabia pledging to go “carbon neutral” by 2060. This article intends to explore how a carbon trading scheme can help the GCC achieve its “carbon neutrality” status. We explore the following: First, what is a carbon-trading scheme, and what evidence exists of its effectiveness around the world, secondly, we explore the current state of GCC emissions and what these emissions could mean towards the region. Last, we look at the implications of continuous unchecked GCC emissions for the region, and what policy recommendations we can implement to counteract them.

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What are the effects of the Pandemic on education policy

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What are the effects of the Pandemic on education policy

The COVID-19 pandemic is one of the most significant crises for the global economy. The pandemic had created a situation where nearly most aspects of society had faced a standstill in traditional forms of interactions. The consequences are that multiple sections of society had to suddenly adapt to unexpected conditions of the pandemic. In particular, this article will look at how the education sector in Bahrain adapted to the new challenges brought upon by the pandemic.

Can unexpected temperatures affect economic growth in Bahrain?

Can unexpected temperatures affect economic growth in Bahrain?

Climate change is a worldwide phenomenon that affects every nation. The risks that are part of climate change are increased adverse weather conditions, affecting coastlines, agriculture, and potentially overall economic activity. Although the GCC is one of the most affected regions for climate change, little is quantified about the costs and damages associated with climate change in our region. This article aims to create a simple analysis comparing economic growth vs. unexpected temperature differences for a given quarter.

Should cars be taxed?

Should cars be taxed?

In Bahrain and the GCC, it’s not a secret that motor vehicles have become the most predominant form of transportation domestically. Motor vehicles are reliable and a convenient form of transportation for Bahrainis and Expatriates. With multiple options, today ranging from sedans to SUVs, compared to the expatriate and Bahraini a century or so ago, the current population of Bahrain more or less are utilizing what would be considered luxury goods then. However, we should ask, at what cost does the rise of these goods have towards the economy? This is what we will explore in our article.

A quick look at the relationship of output and employment by nationality in Bahrain

A quick look at the relationship of output and employment by nationality in Bahrain

What is the relationship between output and employment in Bahrain? This article takes a quick look at the theory and actual results of what output and employment looks like by nationality in Bahrain. Does an increase in production result in higher employment rates amongst expatriates and Bahrainis? If so, why? Why do we see a relationship between output and employment? These are the items that we will address.

Is the opening of a new tobacco plant as lucrative as it seems?

Is the opening of a new tobacco plant as lucrative as it seems?

Recently, parliament has been debating the opening of a new 75.4 million Dinar (200 Million USD) tobacco plant in Bahrain, where the factory's approval has been subjected to many delays. Plans for the tobacco plant can be traced back to September 2019, where some MP members have urged such a plant's approval. Currently, Bahrain prohibits the manufacturing of tobacco products since the introduction of tobacco legislation in 2009. MPs have argued that the tobacco plant will generate jobs and growth towards the economy by opening the economy towards another industry and thus support the effort of diversification (although such goods have large externality costs towards society).

How do prices move in the months during Ramadan & Eid?

How do prices move in the months during Ramadan & Eid?

Is there a large variation in prices during Ramadan and Eid in Bahrain? If so, to what extent do they change? Through a basic data analytic overview, this article will investigate whether we observe such a fluctuation in prices during the season of Ramadan and Eid in Bahrain. Understanding whether these prices change seasonally can prove to be important for policymakers in the country. In particular, economists believe that decision-makers should use data based on the real trends of price levels, which is achieved by applying seasonal adjustments to the data.

Can the ratification of the GCC Land law revive the Real Estate and Construction Industry?

Can the ratification of the GCC Land law revive the Real Estate and Construction Industry?

Bahrain has recently ratified Article 1 of the Legislative Decree No.40 of 1999 which grants GCC nationals unrestricted land ownership in Bahrain. Article 1 states that ‘Nationals of GCC States may own constructed properties and lands in the State of Bahrain by any prescribed method of legal, well or inheritance conveyance between individuals and shall be treated in this respect as Bahrainis’.

Previously, all non Bahrainis were limited to a Freehold Title restricted to certain designated investment areas such as Juffair, Seef, Amwaj Islands, Reef Island, Durrat Marina, Durrat Al Bahrain amongst others. However, with the ratification, Bahrainis and other GCC nationals can hold a Freehold Title on property anywhere throughout Bahrain. As per Ahmed Al Haddad from the Shura council, GCC nationals make up 93% of all Freehold Title ownership, while Non-GCC nationals make up just 7% of Freehold Title ownership. In this article, we will explore what the ratification of this law could potentially mean for the Real Estate and Construction sector.

Does it make sense for consumers to purchase an electric car in the GCC?

Does it make sense for consumers to purchase an electric car in the GCC?

Since the initial rise of electric vehicles and other transportation methods, there have been concerns that usage of electric transportation may have negative environmental impacts depending on the source of electricity used to charge electric vehicles. As a result, over the years, there have been continuous efforts to estimate the environmental impacts of electric cars and transportation methods on the environment based on electricity sources used.

In this extended article, we will attempt to use research conducted elsewhere to estimate, whether it makes sense for consumers to purchase an electric vehicle in the GCC for environmental reasons. The reason behind this is that in recent years, there has been a growing trend of owning Teslas in the GCC, if not, at least in the UAE with the opening of the first Tesla dealership with acceptance of online orders. Therefore, we should ask the question, with the GCC’s electricity mix, would it make sense to import, and use electric cars given the potential environmental impacts it may have for the given grid being used in the GCC?

Limiting Bahraini Unemployment Amid COVID-19: The Bahraini Wage Subsidy

Limiting Bahraini Unemployment Amid COVID-19: The Bahraini Wage Subsidy

In the face of the global coronavirus pandemic, supply and demand shocks to the economy have caused businesses in Bahrain to suffer from a significant reduction in economic activity, which has negatively impacted their individual levels of productivity. This has had consequences for the ability of said businesses to retain their current levels of employment during these challenging times. At the end of June, 2020 the Bahraini government decided to extend the financial stimulus package for the private sector, and subsidize 50% of wages for insured Bahraini employees in the most adversely affected industries for 3 additional months, from July to September of 2020.

Labour Productivity and COVID-19: A Brief Analysis of Bahrain

Labour Productivity and COVID-19: A Brief Analysis of Bahrain

Bahrain had seen its first case of COVID-19 on February 24, 2020. Since then, a set of preventative measures were implemented to control the spread of the virus. The outbreak has had an unprecedented impact on our economy. In particular, policies were implemented that encouraged workers from both the private and public sectors to work from home.

Does the weather affect construction productivity?

Does the weather affect construction productivity?

Bahrain is known to have extreme temperatures during the summer months. As a result, those who work outdoors in construction are exposed to the dangers of heat exhaustion, as well as potentially heat stroke if they are allowed to continue working outside in extreme conditions. As we approach the summer months and preparations are underway to ensure the safety of these workers (via policies such as bans on outdoor work during high temperatures), one must ask, to what extent will we face a drop in productivity during hotter conditions?