Search

This paper aims to analyze the link between environmental degradation and institutional quality and the price of oil moderated by economic complexity and the underground economy. We use quantile regressions with annual panel data for 15 countries in the Middle East and North Africa during 1995–2021. The findings indicate that institutional quality, economic complexity, and output positively and heterogeneously impact environmental degradation. However, the square of production has a negative impact, confirming an inverted U relationship between production and environmental degradation. Likewise, we find that the price of oil and the underground economy have a negative and heterogeneous impact on environmental degradation. Based on our results, a potential recommendation for policymakers is that the institutional framework of Middle Eastern and North African countries should be accompanied by a more significant concern for the environment instead of prioritizing extractive growth that is detrimental to the environment's environmental sustainability. Likewise, economic diversification will mitigate environmental degradation and improve formal employment. Our findings are relevant to policymakers and researchers interested in promoting ecological sustainability. [ABSTRACT FROM AUTHOR]

This paper uses panel cointegration techniques and Granger causality tests to investigate the dynamic causal links between per capita renewable energy consumption, agricultural value added (AVA), carbon dioxide (CO 2 ) emissions, and real gross domestic product (GDP) for a panel of five North Africa countries spanning the period 1980–2011. In the short-run, Granger causality tests show the existence of bidirectional causality between CO 2 emissions and agriculture; a unidirectional causality running from agriculture to GDP, from GDP to renewable energy consumption, and from renewable energy consumption to agriculture. In the long-run, there is bidirectional causality between agriculture and CO 2 emissions; a unidirectional causality running from renewable energy to agriculture and to emissions, and from output to agriculture and to emissions. Long-run parameter estimates show that an increase in GDP or in renewable energy consumption (including combustible and waste) increases CO 2 emissions, whereas an increase in agricultural value added reduces CO 2 emissions. As policy recommendation, North African authorities should encourage renewable energy consumption, and especially clean renewable energy such as solar or wind, as this improves agricultural production and help to combat global warming. [ABSTRACT FROM AUTHOR]