Impact of Renewable Energy Development on Employment in MENA Member Countries

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Abstract

Countries around the world possess diverse capacities for the production of renewable energy, and due to wider access to these resources, their environmental advantages, and their lower costs compared to conventional fuels, many have taken steps toward expanding renewable energy generation. Energy, as one of the fundamental inputs of production, plays a decisive role in the process of economic development and growth. Therefore, given that macroeconomic indicators are also influenced by the development of renewable energy, this study examines the relationship between renewable energy production and employment rates in MENA member countries over the period 1995–2025. The results of the study indicate that renewable energy production has a positive and statistically significant effect on employment in MENA countries. Specifically, a one percent increase in renewable energy production leads to a 0.12 percent increase in employment in this group of countries. Given the high dependence of MENA economies on extensive fossil fuel resources, the expansion of renewable energy production can generate substantial employment effects by creating new productive capacities and supporting economic diversification.