Modelling dynamic links among energy transition, technological level and economic development from the perspective of economic globalisation: Evidence from MENA economies

Abstract

It is patently obvious that renewable energy sources like solar and wind play a crucial part in preventing environmental degradation. This research analyses the interplay between energy transitions, technology, disaggregated energy consumption, and long-term economic growth in 21 states of the Middle East and North Africa countries (MENA). Using cutting-edge econometric techniques, the study conduct empirical research covering the years 1997–2021 and uncover persistent connections between the variables of interest. In a long-run analysis, energy transitions (ET), economic globalization (EG), technology (T), consumption of renewable energy (RE), and consumption of non-renewable energy (NRE) positively impact economic growth (EGR), while natural resources (N) exhibit no effects on economic growth. In the short-run analysis, energy transitions, economic globalization, and natural resources, on the other hand, revealed negative impacts on economic growth. Whereas other variables like technology, consumption of renewable energy, and consumption of non-renewable energy showed no effects on the economy’s growth in the short term analysis. Policymakers in MENA countries are urged to lower carbon costs and taxes, work together more on R&D, bring technologies with low CO2 emissions to market, cut subsidies for non-renewable sources, set up a framework for the spread of new technologies, and adopt a green trade strategy in order to achieve sustainable development.