The Bioenergy Growth Emissions Nexus in Egypt: An ARDL Analysis with a Focus on Agricultural Waste

The present study examines the relationship between environmental, economic, and bioenergy impacts of renewable energy in Egypt, spanning from 1990 to 2023. The study utilizes three distinct models, concluding that all variables remain stationary at I(0) and I(1). Therefore, analysis is conducted using the Autoregressive Distributed Lag (ARDL) approach. Model 1 captures the relationship between bioenergy production and GDP per capita, as well as the significant impact of capital formation on economic growth. Models 2 and 3 of the study have CO2 emissions as the dependent variable, which indicates that renewable energy, urbanization, GDP per capita, and bioenergy production have a significant impact. Moreover, the short-run analysis conducted using the Error Correction Model (ECM) reveals the model’s long-run convergence. The study’s findings also support the environmental Kuznets curve (EKC) hypothesis, and the interaction term between bioenergy and GDP per capita is found to contribute to carbon dioxide emissions. To achieve a low-carbon and growth-oriented economy, policymakers should encourage investment in renewable energy, as it enhances technological efficiency and fosters sustainable agricultural growth.