The Economic Impact of Renewable Energy Adoption on Regional Economies of MENA

Abstract

Countries all over the world has turned their attention to the adoption of renewable energy from fossil particularly in MENA countries. Low-carbon energy sources are becoming more and more popular in the MENA and around the world as a means of halting climate change and fostering economic growth. It is critical to reduce emissions and stop producing electricity using antiquated energy sources. Therefore, a more sustainable future can be facilitated by technical breakthroughs, deregulated energy markets, and environmental challenges. The paper investigated the impact of renewable energy adoption on regional economies in MENA countries. The data was collected from five MENA countries from 2013 to 2022 as renewable energy consumption, inflation real interest rate, FDI were examined on GDP per capita in 19 MENA countries. It found that, there is no significant impact of RE on GDP per capita, while inflation had a negative effect. Interest rates and FDI also showed no significant relationship with GDP per capita.

Keywords: Renewable Energy, MENA, GDP per capita, real interest rate, FDI, inflation

DOI: 10.7176/JESD/16-2-08

Publication date: April 30th 2025