IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2021-03-47.html
   My bibliography  Save this article

Energy Consumption, Governance Quality and Sustainable Development Nexus: Empirical Evidence from MENA Countries

Author

Listed:
  • Mongi Lassoued

    (Department of Economics, Higher Institute of Finance and Fiscality, University of Sousse, Sousse, Tunisia.)

Abstract

The objective of this paper is to empirically examine whether energy consumption and governance quality affect sustainable development in 17 Middle East and North Africa (MENA) countries over the period 1984-2018 using a simultaneous equation model (SEM). Empirical results provide evidence that control of corruption and the institutional or governance quality of are complementary and essential for energy consumption to have an indirect positive impact on sustainable development. The results also show that sustainable development reacts negatively to energy consumption because the poor governance quality in MENA countries. These empirical insights are of particular interest to policymakers to improve the governance quality and implement sound economic policies to support economic development.

Suggested Citation

  • Mongi Lassoued, 2021. "Energy Consumption, Governance Quality and Sustainable Development Nexus: Empirical Evidence from MENA Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 388-394.
  • Handle: RePEc:eco:journ2:2021-03-47
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/11259/5831
    Download Restriction: no

    File URL: https://www.econjournals.com/index.php/ijeep/article/view/11259/5831
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Editorial, 2020. "Covid-19 and Climate Change," Journal, Review of Agrarian Studies, vol. 10(1), pages 5-6, January-J.
    2. Jakob Svensson, 2005. "Eight Questions about Corruption," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 19-42, Summer.
    3. Jeffrey D. Sachs & Guido Schmidt-Traub & Mariana Mazzucato & Dirk Messner & Nebojsa Nakicenovic & Johan Rockström, 2019. "Six Transformations to achieve the Sustainable Development Goals," Nature Sustainability, Nature, vol. 2(9), pages 805-814, September.
    4. Cole, Matthew A., 2007. "Corruption, income and the environment: An empirical analysis," Ecological Economics, Elsevier, vol. 62(3-4), pages 637-647, May.
    5. Dong, Kangyin & Sun, Renjin & Hochman, Gal, 2017. "Do natural gas and renewable energy consumption lead to less CO2 emission? Empirical evidence from a panel of BRICS countries," Energy, Elsevier, vol. 141(C), pages 1466-1478.
    6. Kirsten Svenja Wiebe & Eivind Lekve Bjelle & Johannes Többen & Richard Wood, 2018. "Implementing exogenous scenarios in a global MRIO model for the estimation of future environmental footprints," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-18, December.
    7. Al-Mulali, Usama & Ozturk, Ilhan, 2015. "The effect of energy consumption, urbanization, trade openness, industrial output, and the political stability on the environmental degradation in the MENA (Middle East and North African) region," Energy, Elsevier, vol. 84(C), pages 382-389.
    8. Filmer, Deon & Hammer, Jeffrey & Pritchett, Lant, 1998. "Health policy in poor countries : weak links in the chain," Policy Research Working Paper Series 1874, The World Bank.
    9. Munir Ahmad & Gul Jabeen & Muhammad Irfan & Marie Claire Mukeshimana & Naseer Ahmed & Maria Jabeen, 2020. "Modeling Causal Interactions Between Energy Investment, Pollutant Emissions, and Economic Growth: China Study," Biophysical Economics and Resource Quality, Springer, vol. 5(1), pages 1-12, March.
    10. Omri, Anis & Daly, Saida & Rault, Christophe & Chaibi, Anissa, 2015. "Financial development, environmental quality, trade and economic growth: What causes what in MENA countries," Energy Economics, Elsevier, vol. 48(C), pages 242-252.
    11. Ozcan, Burcu, 2013. "The nexus between carbon emissions, energy consumption and economic growth in Middle East countries: A panel data analysis," Energy Policy, Elsevier, vol. 62(C), pages 1138-1147.
    12. Narayan, Paresh Kumar & Popp, Stephan, 2012. "The energy consumption-real GDP nexus revisited: Empirical evidence from 93 countries," Economic Modelling, Elsevier, vol. 29(2), pages 303-308.
    13. Shahbaz, Muhammad & Ozturk, Ilhan & Afza, Talat & Ali, Amjad, 2013. "Revisiting the environmental Kuznets curve in a global economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 494-502.
    14. Corinne Le Quéré & Robert B. Jackson & Matthew W. Jones & Adam J. P. Smith & Sam Abernethy & Robbie M. Andrew & Anthony J. De-Gol & David R. Willis & Yuli Shan & Josep G. Canadell & Pierre Friedlingst, 2020. "Temporary reduction in daily global CO2 emissions during the COVID-19 forced confinement," Nature Climate Change, Nature, vol. 10(7), pages 647-653, July.
    15. Fredriksson, Per G. & Vollebergh, Herman R. J. & Dijkgraaf, Elbert, 2004. "Corruption and energy efficiency in OECD countries: theory and evidence," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 207-231, March.
    16. Goh, Tian & Ang, B.W., 2018. "Quantifying CO2 emission reductions from renewables and nuclear energy – Some paradoxes," Energy Policy, Elsevier, vol. 113(C), pages 651-662.
    17. Takuma Kunieda & Keisuke Okada & Akihisa Shibata, 2014. "Corruption, capital account liberalization, and economic growth: Theory and evidence," International Economics, CEPII research center, issue 139, pages 80-108.
    18. Lopez, Ramon & Mitra, Siddhartha, 2000. "Corruption, Pollution, and the Kuznets Environment Curve," Journal of Environmental Economics and Management, Elsevier, vol. 40(2), pages 137-150, September.
    19. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
    20. Begum, Rawshan Ara & Sohag, Kazi & Abdullah, Sharifah Mastura Syed & Jaafar, Mokhtar, 2015. "CO2 emissions, energy consumption, economic and population growth in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 594-601.
    21. repec:cii:cepiei:2014-q3-139-5 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hbib Sekrafi & Asma Sghaier, 2018. "Examining the Relationship Between Corruption, Economic Growth, Environmental Degradation, and Energy Consumption: a Panel Analysis in MENA Region," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(3), pages 963-979, September.
    2. Arminen, Heli & Menegaki, Angeliki N., 2019. "Corruption, climate and the energy-environment-growth nexus," Energy Economics, Elsevier, vol. 80(C), pages 621-634.
    3. Ren, Yi-Shuai & Ma, Chao-Qun & Apergis, Nicholas & Sharp, Basil, 2021. "Responses of carbon emissions to corruption across Chinese provinces," Energy Economics, Elsevier, vol. 98(C).
    4. Lapatinas, Athanasios & Garas, Antonios & Boleti, Eirini & Kyriakou, Alexandra, 2019. "Economic complexity and environmental performance: Evidence from a world sample," MPRA Paper 92833, University Library of Munich, Germany.
    5. Le Hoang Phong, 2019. "Globalization, Financial Development, and Environmental Degradation in the Presence of Environmental Kuznets Curve: Evidence from ASEAN-5 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 40-50.
    6. Jeong Hwan Bae & Dmitriy D. Li & Meenakshi Rishi, 2017. "Determinants of CO emission for post-Soviet Union independent countries," Climate Policy, Taylor & Francis Journals, vol. 17(5), pages 591-615, July.
    7. Bin Dong & Benno Torgler, 2010. "The Consequences of Corruption: Evidence from China," Working Papers 2010.73, Fondazione Eni Enrico Mattei.
    8. Salvatore Bimonte & Arsenio Stabile, 2019. "The Effect of Growth and Corruption on Soil Sealing in Italy: A Regional Environmental Kuznets Curve Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(4), pages 1497-1518, December.
    9. Zhang, Yue-Jun & Jin, Yan-Lin & Chevallier, Julien & Shen, Bo, 2016. "The effect of corruption on carbon dioxide emissions in APEC countries: A panel quantile regression analysis," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 220-227.
    10. Zhou, Mengling & Wang, Bing & Chen, Zhongfei, 2020. "Has the anti-corruption campaign decreased air pollution in China?," Energy Economics, Elsevier, vol. 91(C).
    11. Montassar Kahia & Anis Omri & Bilel Jarraya, 2021. "Green Energy, Economic Growth and Environmental Quality Nexus in Saudi Arabia," Sustainability, MDPI, vol. 13(3), pages 1-13, January.
    12. Sekrafi Habib & Snoussi Abdelmonen & Mili Khaled, 2020. "The Effect of Corruption on the Environmental Quality in African Countries: a Panel Quantile Regression Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(2), pages 788-804, June.
    13. Madhu Sehrawat & Sanjay Kumar Singh, 2021. "Do Corruption and Income Inequality Play Spoilsport in The Energy Efficiency-Growth Relationship in BRICS Countries?," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 19(4), pages 727-746, December.
    14. Sami Ben Jabeur & Asma Sghaier, 2018. "The relationship between energy, pollution, economic growth and corruption: A Partial Least Squares Structural Equation Modeling (PLS-SEM) approach," Economics Bulletin, AccessEcon, vol. 38(4), pages 1927-1946.
    15. Adebola Solarin, Sakiru & Al-Mulali, Usama & Ozturk, Ilhan, 2017. "Validating the environmental Kuznets curve hypothesis in India and China: The role of hydroelectricity consumption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 1578-1587.
    16. Pata, Ugur Korkut, 2018. "The influence of coal and noncarbohydrate energy consumption on CO2 emissions: Revisiting the environmental Kuznets curve hypothesis for Turkey," Energy, Elsevier, vol. 160(C), pages 1115-1123.
    17. Leitão, Alexandra, 2010. "Corruption and the environmental Kuznets Curve: Empirical evidence for sulfur," Ecological Economics, Elsevier, vol. 69(11), pages 2191-2201, September.
    18. Bin Dong & Benno Torgler, 2010. "The Consequences of Corruption: Evidence from China," Working Papers 2010.73, Fondazione Eni Enrico Mattei.
    19. Sencer Atasoy, Burak, 2017. "Testing the environmental Kuznets curve hypothesis across the U.S.: Evidence from panel mean group estimators," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 731-747.
    20. Nasreen, Samia & Anwar, Sofia & Ozturk, Ilhan, 2017. "Financial stability, energy consumption and environmental quality: Evidence from South Asian economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 1105-1122.

    More about this item

    Keywords

    governance quality; energy consumption; economic growth; simultaneous equation model;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2021-03-47. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.