Renewable Energy, Quality of Institutions and Economic Growth in MENA Countries: a Panel Cointegration Approach

In this paper, we examine the relationship between renewable energy and economic growth taking into account institutional measures. Using panel cointegration tests, we found that these two variables and any institutional measure, of all considered in this study, are co-integrated. Furthermore, we found a strong causality running from renewable energy and any institutional measure, except for law and order, to growth. A reverse path is also observed since there is also a strong causality running from growth to renewable energy when the causal regression includes any institutional measure. Policy implications are accordingly derived