Integrated analysis for Renewable Energy-Economic Development-Environmental Sustainability (RE-ED-ES) Nexus: Analysis of MENA countries

The new industrialization necessitates resource saving, economic development, environmental efficiency and sustainability. Efficiency level of renewable energy towards some of these indicators is an ongoing debate among policy makers. This paper evaluates efficiency of renewable energy production/consumption levels that adequately supports economic development while maintaining environmental sustainability. To that effect, an Integrated Renewable Energy-Economic Development-Environmental Sustainability (RE-ED-ES) Nexus model is introduced. Data Envelopment Analysis (DEA) is utilized to estimate efficiency of conventional energy, renewable energy-economic development-environmental sustainability nexus. The performance of Middle East and North African (MENA) region countries is estimated from 2006 through 2016. Results show the efficiency nexus of conventional energy-economic development-environmental sustainability is significantly higher (98%) than RE-ED-ES nexus (69.5%). Morocco, and Saudi Arabia lead the way in RE-ED-ES efficiency in 2016. Significant RE-ED-ES nexus scale inefficiency was identified for most countries. Inferring that inefficiency of RE-ED-ES nexus has more to do with the size inadequacy of the renewable energy system than its operational function. Therefore, resources and policies must be targeted towards RE-ED-ES Nexus expansion accompanied with cautious and target oriented strategy.