Oil Shocks, Renewable Energy, and Growth Regimes in Algeria: A Multiple-Threshold NARDL Analysis of CO₂ Emissions

This study employs the MT-NARDL model to examine the nonlinear relationship between economic growth, oil prices, renewable energy consumption, and CO₂ emissions in Algeria over 1980–2024. Allowing GDP per capita to switch across low, medium, and high regimes, the model captures asymmetric short- and long-run responses. The Environmental Kuznets Curve is rejected: no regime yields a significant long-run effect on emissions, evidencing the absence of an automatic decoupling threshold. Renewable energy is the only robust driver of permanent carbon reduction, cutting emissions by 0.155% for each additional 1% share, despite an initial “brown-build” uptick. Oil-price shocks exert merely transitory impacts, whereas medium-growth episodes re-ignite emissions after two years. Error-correction is rapid, yet hydrocarbon dependency persists. Aligning development with climate goals, therefore, requires a coherent policy package that couples accelerated clean-energy deployment, stringent efficiency standards, and economic diversification away from carbon-intensive sectors. By foregrounding regime-dependent asymmetries, the paper offers new empirical evidence for resource-rich economies.

Authors

Institutions

Publication Details

Journal
Globalization and Business
Published
2025-12-24
DOI
https://doi.org/10.35945/gb.2025.20.005
Primary Topic
Energy, Environment, Economic Growth
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Oil Shocks, Renewable Energy, and Growth Regimes in Algeria: A Multiple-Threshold NARDL Analysis of CO₂ Emissions

Hacen Kahoui, Abdelkader Sahed
Globalization and Business
Energy, Environment, Economic Growth
article

Oil Shocks, Renewable Energy, and Growth Regimes in Algeria: A Multiple-Threshold NARDL Analysis of CO₂ Emissions

Hacen Kahoui, Abdelkader Sahed
article en

Abstract

This study employs the MT-NARDL model to examine the nonlinear relationship between economic growth, oil prices, renewable energy consumption, and CO₂ emissions in Algeria over 1980–2024. Allowing GDP per capita to switch across low, medium, and high regimes, the model captures asymmetric short- and long-run responses. The Environmental Kuznets Curve is rejected: no regime yields a significant long-run effect on emissions, evidencing the absence of an automatic decoupling threshold. Renewable energy is the only robust driver of permanent carbon reduction, cutting emissions by 0.155% for each additional 1% share, despite an initial “brown-build” uptick. Oil-price shocks exert merely transitory impacts, whereas medium-growth episodes re-ignite emissions after two years. Error-correction is rapid, yet hydrocarbon dependency persists. Aligning development with climate goals, therefore, requires a coherent policy package that couples accelerated clean-energy deployment, stringent efficiency standards, and economic diversification away from carbon-intensive sectors. By foregrounding regime-dependent asymmetries, the paper offers new empirical evidence for resource-rich economies.

Globalization and Business
University of Abou Bekr Belkaïd (DZ), Dynamic Systems (United States) (US), Centre de Recherche en Économie Appliquée pour le Développement (DZ)
Climate action
Openalex Percentile: Top 22%
Energy, Environment, Economic Growth
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.