Assessing Policy Strategies for Achieving Carbon Neutrality in MENA Countries: Integrating Governance, Green Energy, and Oil Rent Management in a Dynamic Modeling Framework

Carbon neutrality has emerged as a critical issue in the 21st century, particularly in the Middle East and North Africa (MENA) region. These nations have demonstrated significant commitment to investing in renewable energy and implementing initiatives aimed at achieving carbon neutrality. The global spotlight on environmental concerns, encompassing the responsibilities of all economic stakeholders, has prompted the convening of COP 27, a pivotal meeting dedicated to reducing carbon emissions on a global scale. However, research on carbon neutrality in the MENA region remains relatively limited, particularly in terms of in-depth analysis of green energy, green technology, oil revenues, and the efficacy of government interventions. This study seeks to address this gap in existing research by investigating the factors influencing the attainment of carbon neutrality in the MENA region from 2000 to 2022. Specifically, the research focuses on the roles of green energy, green technology, oil revenues, and government effectiveness in this context. Utilizing the Method of Moments’ Quantile Regression, this study aims to analyze the impact of location and scale on the conditional distribution of carbon emissions. The findings reveal that investments in green energy, adoption of green technology, increases in service-added value, and oil revenues are associated with decreased carbon emissions, while greater trade openness correlates with emission reductions. However, all governance metrics examined exhibit a positive correlation with carbon emissions. These results underscore the importance of prioritizing investments in green energy and enhancing the effectiveness of governmental initiatives to steer economic growth towards achieving carbon neutrality. Moving forward, policymakers in the MENA region are encouraged to place greater emphasis on sustainable energy solutions and to implement strategies that enhance the efficacy of government interventions to accelerate progress towards carbon neutrality.