Does Innovation Drive Renewable Energy in Arab Countries? Insights from Method of Moments Quantile Regression

DOI

10.2991/978-94-6239-743-9_8How to use a DOI?

Keywords

Innovation; Renewable Energy; Arab Countries; Method of Moments Quantile Regression (MMQR)

Abstract

This study examines how innovation affects renewable energy adoption across 11 Arab countries from 2007 to 2023, addressing a critical gap in the literature on the so-called innovation paradox in resource-rich economies. Using the Method of Moments Quantile Regression (MMQR), the analysis captures heterogeneous effects across the distribution of renewable energy consumption. The findings reveal a counterintuitive negative association between the Global Innovation Index and renewable energy uptake in the middle and upper quantiles, providing empirical support for the resource curse hypothesis: innovation capacity in hydrocarbon-rich Arab states is often channeled toward fossil fuel sectors rather than clean energy. In contrast, human development emerges as the most robust and consistent driver of renewable energy deployment, while oil rents positively influence renewable energy across all quantiles, suggesting successful rent recycling in some cases. Financial development, measured by domestic credit, shows a persistent negative effect, reflecting sectoral biases in credit allocation. Government effectiveness becomes significant only at higher quantiles, highlighting the threshold role of institutional quality as renewable energy systems mature. These results underscore the need for targeted policy interventions that realign innovation incentives, strengthen human development, and enhance institutional quality to overcome structural lock-ins and accelerate the energy transition in Arab countries.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Lotfi Mekhzoumi
AU  - Okba Abdellaoui
AU  - Issam Djouadi
PY  - 2026
DA  - 2026/08/11
TI  - Does Innovation Drive Renewable Energy in Arab Countries? Insights from Method of Moments Quantile Regression
BT  - Proceedings of API Conference 2025: Empowering the future: Energy Transition and Economic Diversification in Arab Countries
PB  - Atlantis Press
SP  - 133
EP  - 156
SN  - 3005-155X
UR  - https://doi.org/10.2991/978-94-6239-743-9_8
DO  - 10.2991/978-94-6239-743-9_8
ID  - Mekhzoumi2026
ER  -