Transitioning to a green economy as a strategy for promoting investment in renewable energy in Algeria

Abstract

Purpose: This study aims to examine the role of the transition toward a green economy in promoting investment in renewable energy in Algeria, in the context of increasing environmental challenges and the need for sustainable economic growth. Method: The study adopts a qualitative and descriptive-analytical approach based on the review of academic literature, policy reports, and secondary data. It analyzes the conceptual framework of the green economy, evaluates the current state of renewable energy investment in Algeria, and explores the institutional and economic conditions shaping this sector. Findings: The findings indicate that Algeria possesses significant renewable energy potential, particularly in solar energy, due to its geographical and climatic conditions. However, the exploitation of these resources remains limited due to several challenges, including strong dependence on hydrocarbon revenues, regulatory and administrative constraints, limited green financing mechanisms, and insufficient technological capabilities. The study also finds that adopting green economy policies—such as financial incentives, institutional reforms, and support for innovation—can positively influence investment in renewable energy. Conclusion/Contribution: The study concludes that the transition toward a green economy represents a strategic pathway for strengthening renewable energy investment and achieving energy transition in Algeria. It contributes to the literature by highlighting the importance of integrated economic and institutional reforms, improving the investment climate, and promoting sustainable development through clean energy policies.