Does green energy sustainability matter for enhancing transport services? Evidence from MENA countries

Purpose The study aims to investigate the relationship between green energy sustainability and transport services in Middle East and North Africa (MENA) countries from 2012 to 2021. Design/methodology/approach The study used feasible generalized least squares (FGLS), instrumental variables of two-stage least squares (IV-2SLS) and instrumental variables of generalized method of moments (IV-GMM) estimators to increase robustness and overcome the panel data’s heterogeneity and endogeneity issues. Findings The study revealed a significant positive relationship between urban development and transport services (% of commercial service imports and exports). Furthermore, there were negative relationships between water footprint and transport services (% of commercial service imports and exports) and carbon footprint and transport services (% of commercial service imports). Additionally, there was a significant positive relationship between renewable energy and transport services (% of commercial service imports). Originality/value This study comprehensively analyses how to achieve sustainable trade transport services. It highlights the importance of investing in transport and renewable energy infrastructure, adopting water conservation technologies in the transport sector and introducing a carbon footprint to incentivize reductions in transport-related emissions.