Economic Growth, Energy and Environment: What Drives CO₂ Emissions in the MENA Region

Abstract

The MENA region, while endowed with abundant energy resources, faces significant environmental and climatic vulnerabilities. As countries in the region strive to sustain economic growth, they must also confront the growing urgency of reducing carbon emissions. This dual challenge is central to the achievement of the Sustainable Development Goals (SDGs), particularly SDG 7 (clean energy), SDG 9 (innovation and infrastructure), and SDG 13 (climate action). Understanding the drivers of CO₂ emissions is thus essential for guiding policies toward a more sustainable development model.  This study empirically investigates the impact of technological innovation, renewable energy consumption, GDP, and non-renewable energy use on CO₂ emissions in MENA countries over the period 2000–2020. Using the Generalized Method of Moments (GMM) approach, the findings reveal that both economic growth and the use of non-renewable energy significantly increase carbon emissions, while the effects of innovation and renewable energy remain statistically limited. These results highlight the need for a stronger commitment to energy transition, green innovation, and environmentally sound public policy to foster a low-carbon growth trajectory in the MENA region.

JEL Classification : Q55, Q43, O13, O47, C33.

Paper type: Empirical Research