Environmental patents enable green innovation.

In recent years, sustainable energy technologies like solar photovoltaics and wind turbines have made significant advancements, resulting in lower costs, increased competitiveness, improved efficiency, and reduced environmental impact (Renewable IRENA, 2020). Battery technologies have also facilitated the widespread adoption of battery-powered electric mobility and storage for integrating clean energy into the grid (Awijen et al., 2022). Innovative technologies enhance standards and market access (Esmaeilpour Moghadam, 2023; Esmaeilpour Moghadam and Karami, 2023), particularly in the renewable energy sector. The growing number of patents related to low-carbon technologies globally highlights the importance of patents in protecting and reducing competitive advantage in an increasingly competitive market (Yu et al., 2016). Through innovation, renewable energy technologies enable a global shift away from a fossil fuel-dependent economy, reducing reliance on fossil fuels (Barton, 2006; Brathwaite et al., 2010).

The Middle East and North Africa (MENA) region possesses abundant renewable energy resources, making it well-suited for the development and implementation of sustainable power systems, particularly solar and wind power (Stambouli, 2011; Tsikalakis et al., 2011). Many countries in the MENA region have recognized the potential of renewable energy and have set ambitious targets for its adoption. For example, Saudi Arabia aims to transition 50% of its electricity to renewable sources by 2030 (Renewable IRENA, 2020). The region has made significant progress in renewable energy adoption, thanks to favorable policies and regulatory frameworks. However, challenges such as financing options and a lack of supportive policies and regulations hinder the expansion of sustainable energy in the region (Carafa, 2015; Krupa et al., 2019). The COVID-19 crisis has further disrupted the energy market, underscoring the need for collaborative efforts from governments, investors, and stakeholders to establish supportive policies, provide financing, and strengthen regulatory frameworks. Green innovation can play a crucial role in addressing these challenges and accelerating the transition to a cleaner energy future in the MENA region (Tambovceva et al., 2019; Albaker et al., 2023). By developing new and innovative technologies, barriers such as limited infrastructure, high upfront costs, and technical difficulties can be overcome (Kabir et al., 2018). Energy storage and automated grid technologies can facilitate the integration of clean energy into the grid, managing the variability of carbon-free energy sources and addressing infrastructure limitations (Kumar and Rathore, 2023). This study aims to explore the relationship between green innovation and the development of clean energy in the MENA region. It contributes to the existing literature in several ways. Firstly, while previous studies have primarily focused on the regulatory and institutional hurdles, including corruption, that impede the progress of renewable energy (Ahmed and Le, 2021; Hille et al., 2020; Tolliver et al., 2020; Liang and Fiorino, 2013; Becker and Fischer, 2013; Sonntag O’Brien and Usher 2004), there is limited research exploring the impact of green innovation on the advancement of clean energy in the MENA region. In light of this gap in the literature, our study aims to contribute by investigating the influence of green innovation on the development of clean energy in MENA. To strengthen our analysis, we employ both first-generation techniques and second-generation estimation techniques as robustness checks. By employing these approaches, we ensure the reliability and validity of our findings, enhancing the overall rigor of the research. Secondly, unlike previous studies that cover various innovative technologies like photovoltaic panels and electric vehicles (Osório et al., 2021; Ding et al., 2023; Talaat et al., 2021; Aftab et al., 2020; Gu et al., 2014; Yohanandhan et al., 2022), our research specifically focuses on the influence of green innovation, measured by patents related to environmental technologies, on the establishment and implementation of sustainable energy systems in MENA. Thirdly, utilizing patents as a metric for green innovation offers significant advantages, providing a direct assessment of innovation deployment and broader geographical coverage compared to alternative approaches. By emphasizing patents related to environmental technologies as indicators of green innovation in the MENA region, we highlight the importance of technologies such as solar panels, wind turbines, energy storage systems, advanced grid systems, and carbon capture and storage solutions. The subsequent sections of the paper include a literature review, a description of the data, model, and methodology employed, presentation of findings, and a conclusion.