The Impact of Renewable Energy on Sustainable Development Factor in Algeria

Abstract

The aim of this research paper is to investigate the role of renewable energy on sustainable development factors and also the importance of energy policy and government institutional on renewable energy deployment in Algeria over the period 1995-2016. We made 4 econometrics models to study the relationship between renewable energy consumption (REC), economic growth (GDP), carbon dioxide emissions (CO2), Human Development Index (HDI), energy policy and government institutional. We found that the (REC) had a positive impact on (GDP) only, while it had a negative influence on (CO2) and (HDI). However, the energy policy had an insignificant effect on renewable energy deployment, while the institutional overall score had a positive influence. Also, we showed with Granger and Toda-Yamamoto causality that there’s no causality between (REC) and (GDP), while there are three unidirectional causalities running from (REC) to (CO2), one-way causality from (REC) to (HDI) and the other one from (GDP) to (HDI), we established that they are two bidirectional causalities between (CO2) and (GDP), and among (CO2) and (HDI).