Navigating the Path to Sustainability: Decarbonization and Energy Transition in MENA Countries

Abstract

This study focuses on analyzing the decarbonization progress in MENA by examining the interplay of various economic and governance factors. The model specification encompasses CO2 emissions per capita, real GDP per capita, government effectiveness, renewable energy consumption, energy use, and the percentage of urban population as key variables. Data from 1996 to 2022 were used in a panel data framework, and econometric techniques were applied to investigate long-term relationships among these variables. The study’s hypotheses explore how changes in economic growth, government effectiveness, renewable energy consumption, energy use, and urbanization influence CO2 emissions in MENA region over time. The findings are based on a panel dataset consisting of 15 Middle East and North African (MENA) countries, selected based on data availability. Descriptive statistics reveal significant variability in CO2 emissions and other key variables, indicating the need for a comprehensive analysis. Panel unit root tests confirm the presence of stationarity in all variables after first differencing, allowing for further analysis. Panel cointegration tests consistently demonstrate significant cointegration among the variables, indicating a long-term relationship between them. These findings provide valuable insights into the interconnected dynamics of economic growth, governance, energy consumption, urbanization, and CO2 emissions in MENA countries. Understanding these relationships is crucial for policy formulation and sustainable development strategies in the region.