Navigating the path to ecological sustainability in MENA’s green transition: the role of renewable energy adoption and environmental regulation

Abstract

Purpose This study investigates the ecological footprint in the MENA region, focusing on the roles of renewable energy adoption and environmental regulations in promoting environmental sustainability. The research addresses the critical need for understanding the effectiveness of renewable energy and governance mechanisms in mitigating environmental degradation in a region heavily reliant on fossil fuels. Design/methodology/approach A quantitative approach is employed, analyzing panel data from 17 MENA countries spanning 2000–2022. The study utilizes the pooled mean group (PMG) estimator to examine long-run and short-run relationships and conducts robustness checks and Granger causality tests to ensure the validity and reliability of the findings. Findings The results reveal that renewable energy investment, the share of renewable energy and installed renewable energy capacity significantly reduce the ecological footprint, highlighting their role in mitigating environmental degradation. In contrast, domestic manufacturing capacity is positively associated with the ecological footprint, reflecting the energy-intensive nature of industrial activities. An inverted U-shaped relationship between renewable energy adoption and ecological footprint is identified, indicating variations in its impact at different levels of adoption. Moreover, environmental regulations enhance the effectiveness of renewable energy, underscoring the importance of strong governance in achieving ecological sustainability in the MENA region. Originality/value This study extends the existing literature by offering a comprehensive analysis of the ecological footprint in the MENA region, integrating the environmental Kuznets curve and technological innovation theories. The novel focus on the moderating role of environmental regulations provides actionable insights for policymakers seeking to balance economic growth with environmental sustainability. The findings underscore the need for targeted renewable energy investments and robust regulatory frameworks to reduce ecological footprints effectively in the MENA region.