Energies, Vol. 19, Pages 1050: Green Finance, the Digital Economy and Energy Consumption in the MENA Region: Toward a Sustainable Carbon Economy

Energies, Vol. 19, Pages 1050: Green Finance, the Digital Economy and Energy Consumption in the MENA Region: Toward a Sustainable Carbon Economy

Energies doi: 10.3390/en19041050

Authors:
Abdalbasat H. A. Alrifadi
Ponle Henry Kareem
Aysem Iyikal Celebi
Serdal Isiktas

The research delves into the connection between green finance, the digital economy, and energy consumption in ten (10) MENA region countries over a 40-year period, from 1983 to 2023. The research used panel-corrected standard errors (PCSE) estimators to get rid of cross-sectional dependence and heteroscedasticity. According to the findings, the digital economy mainly contributes to cutting energy consumption, whereas green finance has a positive association which is likely due to the rebound effects and the embedded energy costs of green infrastructures. The control variables such as trade openness, technological innovation, and industrial structure are linked in a positive way to higher energy consumption. The findings imply a policy approach that has these two sectors as its main focus, in addition to emphases on digitalization for more efficient operation and green finance for the fostering of the transition of energy sources in the region.