Towards Energy Resilience in MENA Countries: The Role of Remittances in Addressing Urban and Rural Energy Poverty

DOI

10.2991/978-94-6239-743-9_6How to use a DOI?

Keywords

Remittances; Energy disparities; Sustainable Development Goals; MENA region

Abstract

Energy disparities between urban and rural areas and resilience policies pose a major challenge for developing countries as they transition to sustainable development. Using a multidimensional measure of energy accessibility and sustainability, this study analyzes the impact of international remittances on energy poverty in 16 MENA countries, in both urban and rural areas. To correct for potential endogeneity biases, the methodology applies the Generalized Method of Moments (GMM) and Lewbel’s (2012) approach for the period 2000-2023. The results show that remittances are an effective means of reducing energy poverty in the MENA region. While increased income improves the well-being of recipient households, allocation behavior varies by countries’ levels of development: households in low-income countries tend to prioritize consumption, while those in middle-income countries are more likely to invest in energy technologies. Public decision-makers therefore need to be alert to the adverse effects of adopting traditional energy technologies on human health and environmental sustainability. Furthermore, the effect of remittances on energy poverty is less significant in urban areas, where energy systems are outdated, characterized by obsolete infrastructure and increased dependence on polluting energy sources such as wood and charcoal. These limitations hamper economic resilience and compromise energy equity. Conversely, in rural areas, where access to electricity remains very limited, the effects of remittances are more significant. This dynamic reflects altruistic behavior on the part of migrants, who increase remittances to support their families facing unfavorable economic conditions. To remedy these disparities and promote an inclusive and sustainable energy transition in the region, it is becoming imperative to deploy targeted regional strategies, increase investment in the modernization of urban energy infrastructure, ensure reliable and equitable access to energy in rural areas, and strengthen stakeholder involvement, accompanied by rigorous and ongoing monitoring.

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  - Hajer Habib
PY  - 2026
DA  - 2026/08/11
TI  - Towards Energy Resilience in MENA Countries: The Role of Remittances in Addressing Urban and Rural Energy Poverty
BT  - Proceedings of API Conference 2025: Empowering the future: Energy Transition and Economic Diversification in Arab Countries
PB  - Atlantis Press
SP  - 86
EP  - 102
SN  - 3005-155X
UR  - https://doi.org/10.2991/978-94-6239-743-9_6
DO  - 10.2991/978-94-6239-743-9_6
ID  - Habib2026
ER  -