The role of environmental technologies and clean energy transition in shaping the N-shaped environmental Kuznets curve: A North African perspective

Abstract

The primary aim of this study is to assess the impact of renewable energy transition and environmental technologies on environmental degradation in North Africa in relation to urbanization. Various econometric methods from the initial and subsequent iterations, such as FM-OLS, D-OLS, and DSUR, were utilized in order to accomplish this. The results suggest that the use of renewable energy has an adverse effect on CO2 emissions, which could lead to a decreased dependence on imported fuels. As opposed to this, environmental technology has a negligible impact on CO2 emissions when economic growth, urbanization, and renewable energy are taken into account. In order to achieve sustainable development and improve environmental conditions, it is critical that North African nations prioritize the integration of renewable energy sources and implement strategies to slow the rate of urbanization. Moreover, a causal analysis reveals that economic growth, the transition to renewable energy, and carbon dioxide emissions are all interdependent. On the contrary, it has been determined that environmental technology and urbanization exert a unidirectional causal influence on CO2 emissions. The results of this research indicate that policymakers in these countries should promote environmentally friendly investments and increase public consciousness regarding environmental technologies. Additionally, it is advisable for these countries to contemplate the adoption of global agreements, such as the Kyoto Protocol, in order to mitigate environmental contamination and strengthen regulatory frameworks pertaining to advancements in energy. Furthermore, the results underscore the importance of maintaining a delicate equilibrium between economic expansion and ecological sustainability, while discouraging the promotion of environmentally detrimental production methods.