Does energy innovation heterogeneously affect renewable energy production?

Achieving long-term sustainable development is a critical global imperative, and the adoption of renewable energy sources plays a pivotal role in this endeavor, aided by the advancements of the Fourth Industrial Revolution. As a result, energy innovation has emerged as a crucial factor in realizing sustainable development goals. This study utilizes panel quantile regression analysis to investigate the relationship between energy innovation and renewable energy production in the Middle East and North Africa (MENA) region from 1985 to 2019. The findings suggest that energy innovation can effectively enhance renewable energy production, particularly in countries with higher proportions of renewable energy generation, such as Egypt, Morocco, and Tunisia. However, countries like Saudi Arabia, which have lower ratios of renewable energy production, may not experience a significant impact from energy innovation. Consequently, the study recommends implementing systematic and integrated measures that focus on raising awareness and improving conditions for the adoption of renewable energy. These measures can drive the transition towards a more sustainable energy landscape in the MENA region. Policymakers should prioritize research and development investment and incentives in countries with higher levels of renewable energy generation, while simultaneously addressing barriers and fostering knowledge sharing between countries with differing levels of renewable energy production.