Energy transition, economic growth and environmental sustainability in Algeria

Abstract

This article aims to empirically analyze the relationship between energy transition, economic growth and CO2 emissions in Algeria, over the period of 1980-2018, using simultaneous equations model. The empirical results reveal that human capital, physical capital stock per capita, energy transition and oil prices stimulate real GDP per capita. Likewise, real GDP per capita positively affects CO2 emissions; however the latter are negatively linked to energy transition and exports. Therefore, increasing the share of renewable energy to fossil fuels consumption is one of the suitable strategies to stimulate economic growth and improve environmental sustainability.