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Factors of investment in renewable energy and energy efficiency in Algeria

Author

Listed:
  • Chikhi Manal Soulaf

    (Higher National School of Management, Algeria)

  • Bouchetara Mehdi

    (Higher National School of Management, Algeria)

  • Zerouti Messaoud

    (Higher National School of Management, Algeria)

Abstract

Our paper aims to identify the most important factors determining companies’ decision to invest in the energy transition in Algeria. Energy transition has been many governments’ main topic of interest over the last decades, climate change has led many of them to establish long-term plans for a successful energy transition; these plans aim to reduce greenhouse gas emissions following the guidelines of the COP21. Through a quantitative approach, we have addressed a questionnaire to different companies operating in Algeria and have obtained a total of 117 responses. The results show that financial, technical and regulatory factors have minimal impact on companies’ decision to invest in renewable energy and energy efficiency in Algeria. Further studies should explore other investment factors to help accurately determine those that significantly impact companies’ decisions to invest in Algeria’s renewable energy and energy efficiency. Furthermore, targetting one sector at a time and exploring the alternatives of foreign direct investment in renewable energy can result in higher efficiency.

Suggested Citation

  • Chikhi Manal Soulaf & Bouchetara Mehdi & Zerouti Messaoud, 2022. "Factors of investment in renewable energy and energy efficiency in Algeria," Economics, Sciendo, vol. 10(2), pages 161-181, December.
    • Handle: RePEc:vrs:econom:v:10:y:2022:i:2:p:161-181:n:8
    DOI: 10.2478/eoik-2022-0020
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    References listed on IDEAS

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    3. Okereke, Chukwumerije, 2007. "An Exploration of Motivations, Drivers and Barriers to Carbon Management:: The UK FTSE 100," European Management Journal, Elsevier, vol. 25(6), pages 475-486, December.
    4. Abban, Abdul Rashid & Hasan, Mohammad Zahid, 2021. "Revisiting the determinants of renewable energy investment - New evidence from political and government ideology," Energy Policy, Elsevier, vol. 151(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Investment; renewable energy; energy efficiency; energy transition; Algeria;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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