The impact of economic growth, renewable energy, technological innovation, and globalization on environmental pollution in North Africa

Abstract Book of the 7th International Conference on Advanced Research in Management, Economics and Accounting

Year: 2025

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The impact of economic growth, renewable energy, technological innovation, and globalization on environmental pollution in North Africa

Faten Aouay

ABSTRACT:

In the 21st century, the consequences of economic activities on nature have greatly threatened the environment and living organisms. CO2 emissions are among the most serious environmental problems that cause air pollution. According to the State of Global Air Report 2024, air pollution caused the death of 8.1 million people worldwide in 2021. Atmospheric pollution particularly affects the population of developing countries because of their socio-economic and environmental vulnerability. The aim of this study is to contribute to the current debate on the causes of environmental pollution by empirically studying the impact of economic growth, renewable energy, technological innovation, and globalization on environmental pollution in the countries of North Africa. For this purpose, the paper collects data of North African Economies for 1990-2023 from Global Economy and World Development Indicators (WDI). The study applies Hausman Test and uses fixed effect and Generalized Method of Moments (GMM). Results show that only renewable energy reduces the environmental pollution. Additionally, economic growth and globalization increase CO2 emissions, and technological innovation has a non-significant effect on environmental pollution. Thus, policymakers should focus on making a strict environmental regulation and looking for a coordinated action between these countries as a strategy for reducing CO2 emissions in North Africa.

Keywords: Carbon dioxide (CO2), low-carbon economy, developing countries, panel data, generalized method of moment