The Effects of Environmental Quality, Technological Progress and Aggregate Risk on Green Growth in the Mena Region

Authors

  • Mohamed Ilyes Gritli Department of Economics, Laboratory for International Economic Integration, Faculty of Economic Sciences and Management of Tunis, University of Tunis El Manar, Tunis, Tunisia; & Department of Economics, Faculty of Juridical Sciences, Economics and Management of Jendouba, University of Jandouba, Jendouba, Tunisia
  • Oubeid Rahmouni Department of Economic, College of Business, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh, Kingdom of Saudi Arabia

DOI:

https://doi.org/10.32479/ijeep.20566

Keywords:

Green Growth, Aggregate Risk, Renewable Energy, Research and Development, Natural Resources Rents, MENA Region

Abstract

Green growth (GG) or environmentally adjusted multifactor productivity growth is essential to achieve the dual objectives of economic development and pollution reduction. In this context, very little work has addressed the issue of sustainable development in the MENA region. Therefore, our work studies the impacts of environmental quality, technological progress and aggregate risk on green growth of this region in the aggregate level. Using the autoregressive distributed lag (ARDL) model over the period 1996-2020, the results demonstrate that GG is positively related to R&D expenditure and natural resource rents but inversely associated with aggregate (economic, financial, and political) risks. In the long run, a 1% increase in total risk decreases GG by 0.7%. In contrast, a 1% increase in profits from fossil fuel exports and innovation increases GG by 0.8% and 0.3%, respectively. The impact of renewable energy consumption is positive but not significant on GG. These findings are also confirmed by alternative regressions and offer several policy recommendations.

Downloads

Published

2025-10-12

How to Cite

Gritli, M. I., & Rahmouni, O. (2025). The Effects of Environmental Quality, Technological Progress and Aggregate Risk on Green Growth in the Mena Region. International Journal of Energy Economics and Policy, 15(6), 227–237. https://doi.org/10.32479/ijeep.20566

Issue

Vol. 15 No. 6 (2025)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.