Behavioral and economic drivers of renewable energy adoption by MSMEs in the MENA region

Abstract Micro, small, and medium enterprises (MSMEs) dominate the MENA private sector, yet renewable-energy technology (RET) adoption remains limited. Using nationally representative TCEES 2023–2024 data from Egypt, Jordan, and Morocco, this study models RET engagement as sequential consideration and effective adoption. Country-specific TAM-FC structural equation models show that facilitating conditions are more strongly associated with behavioral intention than perceived usefulness. Sequential logistic models show that intention and facilitating conditions are associated with consideration, whereas effective adoption is associated with facilitating conditions, firm size, premises ownership, and targeted subsidies, but not intention. The results indicate an intention–behavior gap: implementation depends on financial, technical, and structural feasibility.