Exploring the interplay among energy dependence, CO2 emissions, and renewable resource utilization in developing nations: Empirical insights from Africa and the middle east using a quantile-on-quantile approach and spatial analysis

Abstract

As an indicator of a nation's reliance on foreign suppliers, Energy dependence is a determining factor in the optimal utilization of fossil fuels, upon which developing countries' economies and environments rely heavily. However, prior empirical research has neglected energy dependence despite its substantial impact on energy consumption structure and pollution. This study examines the effect of energy dependence on energy intensity, carbon dioxide (CO2) emission intensity, and the use of renewable resources in 65 African and Middle Eastern developing countries using the novel quantile-on-quantile method (1990–2020). The study also performs a spatial analysis using Moran's I method to understand the effect of fossil resource distribution on these factors and their interconnections. More than 70% of quantiles revealed a positive relationship between energy dependence and other variables. Indeed, energy dependence has accelerated the growth of all factors, which was unexpected for energy and emission intensity. The spatial analysis revealed a spillover effect in the majority of the regions, implying that the impacts of energy dependence are nearly identical in neighboring countries. In conclusion, establishing regional energy exchange unions could effectively mitigate the adverse environmental and economic effects of energy dependence.