Environmental economics in Algeria: empirical investigation into the relationship between technological policy, regulation intensity, market forces, and industrial pollution of Algerian firms

Clean technologies are generally developed in industrialized countries and transferred to developing countries where they are adapted to local market conditions. This transfer is regularized by the technological and environmental policies of the receiving countries. The aim of the present work is to show that clean technologies are important in dealing with environmental problems in Algeria and that the regulation plays a key role in the technological eco-development process. To do so, we adopt an empirical approach that is based on data collection from industrial firms in the West of Algeria which operate in different sectors of activities. The present study used a modeling approach that relied on a structural equation model and multiple regression analysis. The developed model is based on the results of the qualitative survey that preceded the econometric study. The results show that the variance of industrial pollution in Algeria is explained by regulation intensity, technological policy, and market forces. In addition, the collected data show that technologies that are needed for green growth in Algeria are mastered in 53% of the cases where technology transfer and adaptive Research and Development (R&D) play an important role. In 75% of cases, regulatory incentives related to the integration of technological change and eco-innovations are one of the key drivers of reducing environmental problems.