Boosting renewable energy consumption through green innovation and financial development: A sustainability framework for the MENA region

This study examines the dynamic relationships between renewable energy consumption (REC), GDP or economic growth (EG), financial development (FD), and green innovation (GI) in eight MENA countries during the period of 1996–2021 through the lens of lobbying effect, sustainability, and energy transiti...

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Main Authors: Magdalena Radulescu, Salaheddine Sari-Hassoun, Salim Bourchid Abdelkader, Kamel Si Mohammed, Nicoleta Dascalu
Format: Article
Language:English
Published: SAGE Publishing 2025-05-01
Series:Energy Exploration & Exploitation
Online Access:https://doi.org/10.1177/01445987241313395
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author Magdalena Radulescu
Salaheddine Sari-Hassoun
Salim Bourchid Abdelkader
Kamel Si Mohammed
Nicoleta Dascalu
author_facet Magdalena Radulescu
Salaheddine Sari-Hassoun
Salim Bourchid Abdelkader
Kamel Si Mohammed
Nicoleta Dascalu
author_sort Magdalena Radulescu
collection DOAJ
description This study examines the dynamic relationships between renewable energy consumption (REC), GDP or economic growth (EG), financial development (FD), and green innovation (GI) in eight MENA countries during the period of 1996–2021 through the lens of lobbying effect, sustainability, and energy transition theories. Employing FMOLS, DOLS, and CCR estimators for long-run coefficients, complemented by Dumitrescu-Hurlin causality tests, we find that there is a statistically significant link between RE and EG at the 1% level; a 1% increase in lnEG corresponds to an increase in lnREC by 1.150%, 0.959%, and 0.553%, respectively. Then, we establish a positive and significant sign at the 1% level between REC and the FD; an upsurge by 1% in lnFD will raise the level of lnREC by 0.113%, 0.050%, and 0.171%, respectively. However, the FMOLS and CCR estimation shows a negative and significant sign at 1% between REC and GI; an increase of 1% in lnGI will decrease the level of lnREC by 0.175% and 0.359%, respectively. We identify one bidirectional causality between REC and FD and two one-way causality, one running from EG to REC and the other from REC to GI. These results suggest the need for policy refinements, particularly in aligning innovation strategies with renewable energy deployment to enhance sustainability in the MENA region.
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institution Kabale University
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2048-4054
language English
publishDate 2025-05-01
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series Energy Exploration & Exploitation
spelling doaj-art-6f957ecc43b349e183a6f2c744425d4a2025-08-20T03:45:02ZengSAGE PublishingEnergy Exploration & Exploitation0144-59872048-40542025-05-014310.1177/01445987241313395Boosting renewable energy consumption through green innovation and financial development: A sustainability framework for the MENA regionMagdalena Radulescu0Salaheddine Sari-Hassoun1Salim Bourchid Abdelkader2Kamel Si Mohammed3Nicoleta Dascalu4 Institute for Doctoral and Post-Doctoral Studies, University “Lucian Blaga” Sibiu, Sibiu, Romania Faculty of Economics and Management, , Algeria Department of Management, , Abha, Saudi Arabia Faculty of Economics and Management, University of Ain Temouchent, Ain Temouchent, Algeria Department of Management and Business Administration, National University of Science and Technology Politehnica Bucharest, Pitesti University Centre, Pitesti, RomaniaThis study examines the dynamic relationships between renewable energy consumption (REC), GDP or economic growth (EG), financial development (FD), and green innovation (GI) in eight MENA countries during the period of 1996–2021 through the lens of lobbying effect, sustainability, and energy transition theories. Employing FMOLS, DOLS, and CCR estimators for long-run coefficients, complemented by Dumitrescu-Hurlin causality tests, we find that there is a statistically significant link between RE and EG at the 1% level; a 1% increase in lnEG corresponds to an increase in lnREC by 1.150%, 0.959%, and 0.553%, respectively. Then, we establish a positive and significant sign at the 1% level between REC and the FD; an upsurge by 1% in lnFD will raise the level of lnREC by 0.113%, 0.050%, and 0.171%, respectively. However, the FMOLS and CCR estimation shows a negative and significant sign at 1% between REC and GI; an increase of 1% in lnGI will decrease the level of lnREC by 0.175% and 0.359%, respectively. We identify one bidirectional causality between REC and FD and two one-way causality, one running from EG to REC and the other from REC to GI. These results suggest the need for policy refinements, particularly in aligning innovation strategies with renewable energy deployment to enhance sustainability in the MENA region.https://doi.org/10.1177/01445987241313395
spellingShingle Magdalena Radulescu
Salaheddine Sari-Hassoun
Salim Bourchid Abdelkader
Kamel Si Mohammed
Nicoleta Dascalu
Boosting renewable energy consumption through green innovation and financial development: A sustainability framework for the MENA region
Energy Exploration & Exploitation
title Boosting renewable energy consumption through green innovation and financial development: A sustainability framework for the MENA region
title_full Boosting renewable energy consumption through green innovation and financial development: A sustainability framework for the MENA region
title_fullStr Boosting renewable energy consumption through green innovation and financial development: A sustainability framework for the MENA region
title_full_unstemmed Boosting renewable energy consumption through green innovation and financial development: A sustainability framework for the MENA region
title_short Boosting renewable energy consumption through green innovation and financial development: A sustainability framework for the MENA region
title_sort boosting renewable energy consumption through green innovation and financial development a sustainability framework for the mena region
url https://doi.org/10.1177/01445987241313395
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