Algeria's pathway to COP28 and SDGs: Asymmetric impact of environmental technology, energy productivity, and material resource efficiency on environmental sustainability

Abstract

This study examines the asymmetric effects of material resource efficiency (MRE), energy productivity (EP), and environmental technology (ENT) on environmental sustainability (ES) in Algeria from 1990/Q1 to 2022/Q4. Using a nonlinear autoregressive distributed lag model (NARDL), we find that both positive and negative shocks to both MRE and ENT contribute to ES, highlighting their effectiveness. Interestingly, positive EP shocks have a stronger mitigating effect compared to negative shocks. This suggests a magnified benefit during periods of efficiency gains. Additionally, asymmetric causality analysis verifies a causal link between MRE, EP, ENT, and ES. Given these results, it is recommended that Algerian policymakers should prioritize investments in MRE and ENT while emphasizing policies that enhance EP due to its magnified benefit on ES. Asymmetric policy responses for green practices alongside alignment with SDGs 7, 8, 12 and COP-28 objectives will optimize Algeria's ES.

Keywords

• Environmental technology
• Energy productivity
• Material resource efficiency
• Environmental sustainability
• Fourier NARDL