مجلة دفاتر اقتصادية
Volume 16, Numéro 1, Pages 415-432
2025-05-25

The Impact Of Energy Consumption On The Environment In Algeria Using The Dynamic Ardl Approach

Authors : Boucherite Kamel . Boumaali Djamel . Touabia Ahmed .

Abstract

Abstract: This study examines the relationship between energy consumption and environmental degradation, focusing on CO2 emissions, in Algeria. The authors use the ARDL model to analyze the long-run and short-run relationships between energy consumption, economic growth, oil production, and carbon dioxide emissions from 1980 to 2020. The results show that energy consumption has a significant positive impact on CO2 emissions in both the short-run and long-run. GDP per capita also has a positive long-run relationship with emissions, while oil production exhibits a weak negative correlation. The study confirms the existence of the Environmental Kuznets Curve, with GDP per capita squared having an inverse relationship with emissions in the long-run. According to dynamic movement analysis, it’s also verified that a shock in energy consumption affects carbon emission in the long-run. We recommend a range of policy interventions to address Algeria's energy-related environmental challenges, including energy efficiency measures, renewable energy development, sustainable urban planning, and industrial innovation. Strengthening environmental regulations, international cooperation, and financial mechanisms to support green technology are also proposed. The findings highlight the need for Algeria to balance economic growth with environmental sustainability through comprehensive policy reforms.

Keywords

Energy consumption ; Environmental degradation ; Short-run and Long-run relationship ; ARDL model