A1736
Title: Asymmetric threshold effects of economic growth on renewable energy development in response to energy Price Fluctuations
Authors: Zakaria Boulanouar - United Arab Emirates University (United Arab Emirates) [presenting]
Abstract: Using a panel smooth threshold regression to analyze data from 17 Middle East and North Africa (MENA) countries, the aim is to investigate how asymmetries in energy price (EP) fluctuations impact renewable energy (RE) development, considering varying economic growth rates. The findings reveal that EP fluctuations influence RE development differently across income levels: in high-income countries, higher EPs accelerate RE growth, while in low-income nations, they slow it down. These results align with the substitution hypothesis, suggesting that higher EPs encourage a shift toward alternative RE sources, though only within the high GDPPC regime in the MENA region. This evidence strongly refutes a one-size-fits-all energy policy for MENA, emphasizing that policies must be tailored to individual countries' economic contexts. High-income nations should focus on removing subsidies to stimulate RE investments, while low-income countries require gradual, transitional strategies to safeguard economic stability. The broader implications extend to global energy policy, advocating for tailored approaches that balance sustainable energy transitions with economic growth.
