Investigating The Impact of Energy Consumption on Human Development Index Considering Economic Complexity

Articles in Press

Document Type : Research Article

Authors

1 Associate Professor, Department of Economics, Faculty of Literature and Humanities, Ilam University, Ilam, Iran

2 M.A in Theoretical Economics, Department of Economics, Faculty of Literature and Humanities, Ilam University, Ilam, Iran

10.22034/jepr.2026.143367.1246

Abstract

Human development is a comprehensive welfare indicator that extends beyond economic growth to encompass education and health. Despite abundant energy resources in the Middle East and North Africa (MENA) region, many countries continue to face serious challenges in attaining higher levels of human development. Heavy reliance on fossil fuels, economic volatility, and limited production diversification have weakened the link between economic growth and sustainable improvements in human well‑being. In this context, economic complexity can play an important role in explaining development disparities. This study examines the impact of energy consumption on the Human Development Index (HDI), accounting for economic complexity in twelve selected MENA countries over the period 1995–2021. Panel quantile regression is employed to capture heterogeneous effects across different levels of human development. The results indicate that GDP per capita, trade openness, and urbanization exert positive and significant effects on HDI across all quantiles. Economic complexity has a negative effect in lower quantiles and turns positive and significant in higher quantiles. Renewable energy consumption negatively affects HDI in lower quantiles, whereas fossil fuel consumption has a positive effect in higher quantiles. These findings highlight the importance of tailoring energy and development policies to the specific stage of development

Keywords

Main Subjects

یادداشت

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Journal of Economic Policies and Research

Articles in Press, Accepted Manuscript
Available Online from 13 January 2026

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  • Receive Date: 28 July 2025
  • Revise Date: 27 December 2025
  • Accept Date: 13 January 2026
  • Publish Date: 13 January 2026

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