The effects of carbon inequality on economic growth: new evidence from MENA region.

This study emphasizes the impact of carbon inequality on the economic growth of Middle East-North African (MENA) economies from 1995 to 2019. By employing the panel cross-sectionally augmented autoregressive distributed lags method (Chudik and Pesaran 2015), we explored the effect of the carbon footprint of top-income classes on economic performance in both the short and long term. The empirical results assume that carbon inequality indicators boost economic growth in the short and long run. In other words, economic growth may be slowed when carbon inequality is reduced. Our study has important implications for climate policy in the MENA region. In this context, relying on a carbon tax can increase business costs and reduce investment incentives leading to a decline in growth. Governments should adopt a more comprehensive approach incorporating other policy instruments such as nudging techniques, financial incentives, and public awareness campaigns. As a result, wealthy people will be encouraged to promote sustainable choices and behaviors that guarantee the progressive transition to low-carbon activities without hurting economic growth.

Does improvement in capital intensity facilitate the transition to renewable energies? Evidence from Tunisia.

The objective of this study is to investigate the potential role of capital deepening in promoting the transition to renewable energy in Tunisia. To this end, the long and short run effects of capital deepening on the renewable energy transition were explored using the vector error correction model (VECM) and the Johansen cointegration technique, along with a linear and nonlinear causality test in the context of Tunisia for the period 1990 to 2018. In particular, we found that capital deepening contributes positively to the transition to clean energy resources. In fact, the results of the linear and nonlinear causality tests confirm a unidirectional causal relationship between capital intensity and the transition to renewable energy. This explains that the increase in capital intensity ratio conducts technical change towards renewable energy, which constitutes a capital-intensive technology. Moreover, these results enable us to draw a conclusion about the energy policies in Tunisia and the developing countries in general. In fact, the renewable energy substitution depends on capital intensity, through the development of specific energy policies, such as renewable energy policies. Gradual substitution of fossil fuel subsidies with renewable energy subsidies is essential to faster the transition to renewable energy and promote capital-intensive production methods.

Exploring the inter-factor and inter-fuel substitution possibilities in Tunisia: the potential of renewable energy.

Tunisia is among the developing countries that have taken initiatives to develop renewable energy and strengthen energy efficiency. Moreover, it has considerable potential, especially in the field of wind and solar energy. However, the country is still dependent on fossil fuel energy. In this context, the transition to renewable energy is considered one of the possible solutions to reduce energy dependence and strengthen the economy in general. Therefore, the aim of this research study is to evaluate the role of renewable energy in shaping the energy transition in Tunisia in order to qualify the possibilities of energy transition. Accordingly, we investigate the potential for substitution between the following factors and fuels: Capital, labor, renewable, and non-renewable energy in Tunisia using a translog production function approach. Due to the multicollinearity of the model, the ridge regression method is used to estimate the parameters of the function. The obtained results showed that the possibility of substitution between inputs, especially between renewable and non-renewable energy, can replace fossil fuels with clean energy consumption. Moreover, to maximize the potential of renewable energy in Tunisia, this study recommends that policy makers should take more reliable measures to reflect the exact price of energy through price regulation measures, encourage investment in research and development, and introduce carbon taxes that could accelerate this transition.

Risk management and policy implications for concentrating solar power technology investments in Tunisia.

Concentrating solar power (CSP) is a promising technology in Tunisia. However, its diffusion is facing many barriers which deter investments. Through the analysis of a CSP plant in Southern Tunisia by using the Global Risk Analysis (GRA) method, we try to analyze the main risks faced by investors. The main objective of this research is to identify and analyze the risks faced by CSP investors in Tunisia and develop strategies that should be adopted to accelerate the process of diffusion of this technology. This analysis allows us to conclude that the CSP project is very exposed to political, financial, physical-chemical, legal, and strategic hazards. Moreover, we show that among the four phases of the project, the preparation phase is the most vulnerable to hazards. In fact, the GRA method makes it possible to determine the list of the major risks, such as the risk of not obtaining permission to build a CSP plant, the risk of non compliance with the deadline, the risk of failure to achieve the expected performance, the risk of insufficient access to capital, and the risk of conflicts with local residents. In order to de-risk CSP technology in Tunisia, we propose some strategies, such as strengthening the public-private partnerships, using participatory approaches, creating local employment, etc.