Abstract
The objective of this paper is to empirically examine whether energy consumption and governance quality affect sustainable development in 17 Middle East and North Africa (MENA) countries over the period 1984-2018 using a simultaneous equation model (SEM). Empirical results provide evidence that control of corruption and the institutional or governance quality of are complementary and essential for energy consumption to have an indirect positive impact on sustainable development. The results also show that sustainable development reacts negatively to energy consumption because the poor governance quality in MENA countries. These empirical insights are of particular interest to policymakers to improve the governance quality and implement sound economic policies to support economic development. Keywords: governance quality, energy consumption, economic growth, simultaneous equation model JEL Classifications: H11, Q01, Q43, C30 DOI: https://doi.org/10.32479/ijeep.11259
Highlights
Achievement of the Sustainable Development Goals (SDGs) varies considerably across countries in the Middle East and North Africa (MENA)
We focused on the impact of the control of corruption (CC) on sustainable development (SD) through energy consumption (EC)
Using a panel data set of 17 MENA countries over the period 1984-2018, and 2SLS approach, the results suggest that IQG plays a crucial role in the SD
Summary
Achievement of the Sustainable Development Goals (SDGs) varies considerably across countries in the Middle East and North Africa (MENA). Certain problems in the region such as conflicts in some MENA countries have not allowed remarkable progress in terms of the Sustainable Development Goals (SDGs), in particular for poverty reduction and in terms of peace, justice and institution building (Cuaresma et al, 2019). MENA countries face major challenges in achieving sustainable development goals, due to stunting and sustainable use of energy resources. Access to infrastructure, which is mainly covered by the affordable and clean energy goal, has improved rapidly. Further efforts should be made to tackle the higher levels of corruption perceived under the 16th Sustainable Development Goal (SDG) (Peace, Justice and Strong Institutions) (Transparency International, 2020)
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