Financial Development,renewable Energy,and Carbon Emissions

This research thesis explores the link between renewable and fossil fuel energy consumption,financial development,economic policy uncertainty,and carbon emissions in the MENA region from 1990 to 2020,using the Cross-sectional autoregressive distributed lag(CS-ARDL)model.The study issue selection comes from the importance of sustainable development,environmental management,and policy-making in the MENA region,with a focus on the role of energy in economic development and carbon emissions.The study has taken an integrated approach to examine the relationship between economic growth,environmental degradation,and sustainable development in MENA countries.The findings reveal a significant relationship between these variables and carbon emissions in the MENA region.The results demonstrate that renewable energy consumption has a negative impact on carbon emissions,while fossil fuel consumption has a positive effect on carbon emissions.The study also shows differences in the impact of renewable energy and fossil fuel consumption on carbon emissions between oil-producing and non-oilproducing countries in the MENA region.Additionally,economic growth has a significant negative effect on carbon emissions in the long run,indicating progress towards sustainable energy policies and environmentally friendly economic growth.However,policymakers need to be cautious about pursuing economic growth at any cost,as further economic growth beyond a certain threshold level can lead to environmental degradation.Financial development and policy uncertainty can have direct and indirect impacts on carbon emissions in the MENA region,with varying effects depending on the context.The results indicate that financial development had no significant effect on carbon emissions in overall MENA countries and nonoil-producing MENA countries.However,in oil-producing countries,financial development increased CO2 emissions.Policy uncertainty had no significant effect on carbon emissions in all panels of MENA countries,but it does have a more pronounced effect on the impact of financial development on CO2 emissions in the panels of overall MENA countries and oil MENA countries.This research underscores the complexity of the relationship between these factors and highlights the need for policymakers to adopt sustainable energy policies to reduce carbon emissions in the MENA region.The study contributes to the existing literature by providing novel insights into the relationship between CO2 emissions and policy uncertainty in the MENA region,which can inform the development of more effective policies and strategies for reducing carbon emissions.The findings of this study are valuable for decision-makers and stakeholders,including policymakers,businesses,and individuals,in developing effective strategies to mitigate the effects of energy consumption and economic policy uncertainty on carbon emissions in the MENA region.This study highlights the potential for international cooperation and collaboration in addressing the common challenge of reducing carbon emissions in the MENA region,and ultimately contributes to long-term sustainability goals.