Algeria is one of the most important CO 2 emitters among developing countries and the third among African countries. It pledged to curb carbon emissions by at least 7% by 2030.However, complying with this target may be a difficult task without compromising economic growth. The aim of this paper is to analyze the relationship between CO 2 emissions and economic growth in Algeria, taking into account energy use, electricity consumption, exports and imports. The validity of the EKC hypothesis, throughout the period from 1970 to 2010, is tested by using the Autoregressive Distributed Lag model extended to introduce the break points. Results confirm the EKC for Algeria. Nevertheless, the turning point is reached for a very high GDP per capita value, indicating that economic growth in Algeria will continue to increase emissions. Results also indicate that an increase in energy use and electricity consumption increase CO 2 emissions, and that exports and imports affect them negatively and positively, respectively. Therefore, it is necessary to promote renewable energies and energy efficiency policies. Regulatory reforms are needed to facilitate foreign investments with which to carry out these policies. Likewise, it may be appropriate to decrease subsides in energy prices to encourage energy efficiency.

Algeria has enormous renewable energy potential. However, fossil fuels remain the main electricity generation source, and the country is the third largest CO 2 emitter in Africa. Algeria is also particularly vulnerable to climate change. Therefore, a set of actions related to energy, forests, industry and waste sectors have been programmed, over the period 2015-2030, and the government action program has given priority to promote renewable energy. In this sense, Algeria is committed to significantly promote investment in renewable energy, during the period 2020-2030. Thus by 2030, renewable electricity production capacity will achieve 22,000 MW, representing 27% of total electricity generation. This paper analyzes the electricity generation measures implemented in Algeria to reach the required energy mix, the legislative framework, financial aid, the feed-in tariff system, the tax incentives, and the tender and auctions undertaken. The analyses reveal that, although the electricity price premium policy has not been revoked, the newly enacted tender scheme is designed to become the standard procedure for launching renewable energy projects in Algeria in the coming years.

Within the framework of the COP21 (Conference of the Parties) agreement, Algeria submitted its Intended Nationally Determined Contribution pledging to reduce carbon emissions by at least 7% by 2030. However, it will be a difficult task to reach this target as total final energy consumption has increased 32% from 2010 to 2014, with the major energy increases being related to electricity use in the residential sector. In this context, the relationship between residential electricity consumption and income is analyzed for Algeria in the period 1970-2013, by estimating a residential electricity consumption per capita demand function which depends on GDP per capita, its squared and cubed terms, the electricity prices, and the goods and services imports. An extended Autoregressive Distributed Lag model (ARDL) was adopted to consider the different growth patterns registered in the evolution of GDP. The estimate results show that the relationships between electricity use and GDP (in per capita terms) present an inverted N-shape, with the second turning point having been reached. Therefore, promoting growth in Algeria could be convenient to reduce the electricity consumption, as a higher income level may allow the use of more efficient appliances. Additionally, renewable energies may be adequate to increase the electricity production in order to cover the increasing residential demand.

The slow growth of Algeria is analyzed in this paper, by comparing the economic growth between Algeria and South Korea, over the period from 1970 to 2010. Both countries were nearly at the same development level at the beginning of the 1960s. Nevertheless, the South Korean economy was ranked 15th in the world in 2010, while Algeria remained underdeveloped. The results obtained show that human capital and physical capital cause the economic growth in the two countries under study. However, the elasticities of productivity with respect to human and physical capital are higher in South Korea. Human capital elasticity in South Korea is two and a half times higher, whereas the physical capital elasticity is twice as high.

Distribution électronique Cairn.info pour De Boeck Supérieur. © De Boeck Supérieur. Tous droits réservés pour tous pays.La reproduction ou représentation de cet article, notamment par photocopie, n'est autorisée que dans les limites des conditions générales d'utilisation du site ou, le cas échéant, des conditions générales de la licence souscrite par votre établissement. Toute autre reproduction ou représentation, en tout ou partie, sous quelque forme et de quelque manière que ce soit, est interdite sauf accord préalable et écrit de l'éditeur, en dehors des cas prévus par la législation en vigueur en France. Il est précisé que son stockage dans une base de données est également interdit.