التكامل الاقتصادي
Volume 13, Numéro 2, Pages 299-310
2025-06-30

Asymmetric Impacts Of Renewable Energy Investment On Economic Growth In Algeria: An Empirical Analysis Using The Nardl Model

Authors : Bakdi Malika . Chellig Abdeldjalil .

Abstract

This study investigates the asymmetric relationship between economic growth and renewable energy investment, human capital, labor, and physical capital in Algeria using the Nonlinear autoregressive distributed lag (NARDL) model to explore both short-run and long-run dynamics. The analyses aims to reveal how positive and negative changes in these factors differentially affect economic growth. Besides, the results imply that the effects of increases and decreases in renewable energy investment exhibit significant asymmetries. Specifically, while positive changes in renewable energy investment lead to substantial improvements in economic growth, negative changes show a more pronounced detrimental effect. Our findings indicate that the positive contributions of renewable energy investment, human capital, labor, and physical capital to economic growth are more pronounced compared to their negative effects. This suggests that Algeria's economy benefits more from increases in these factors than it suffers from decreases. Overall, this study underscores the need for policymakers to consider the asymmetric nature of these relationships when designing economic policies and investment strategies to promote balanced and sustainable growth in Algeria.

Keywords

: renewable energy ; growth ; human capital ; Labor ; asymmetric