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Energy, Environmental Economics, and Natural Resources

Paper Session

Saturday, Jan. 3, 2026 8:00 AM - 10:00 AM (EST)

Philadelphia Marriott Downtown, Room 408
Hosted By: Middle East Economic Association
  • Chair: Nathalie Hilmi, Centre Scientifique de Monaco

Seawater Desalination as a Sustainable Solution for Water Management in the Maghreb Region (Under Climate Crisis)

Nathalie Hilmi
,
Centre Scientifique de Monaco

Abstract

Water scarcity in the Maghreb has become critical due to growing demographic pressure, economic development, and climate variability. This research evaluates the socio-economic and environmental impact of seawater desalination as a sustainable solution for water management in Algeria, Tunisia, and Morocco. The key question is: To what extent can desalination provide a sustainable and effective solution for water management in the Maghreb? Furthermore, the study aims to compare the three Maghreb countries to identify the differences in their desalination strategies and water management approaches, as well as to explore different future scenarios. This comparative analysis will help to highlight the specific challenges and opportunities in each country, providing a nuanced understanding of how desalination can contribute to long-term water security in the region.
The objective is to develop a comprehensive governance framework based on a thorough analysis of desalination infrastructure and future scenarios.
The methodology combines Geographic Information System (GIS) analysis, statistical modeling, and economic projections. The analysis will also explore the socio-economic impact of desalination, including water accessibility and the potential for regional cooperation and private sector involvement. The paper will end with governance and legal frameworks.
Preliminary findings suggest desalination could significantly reduce water stress in the Maghreb. However, high energy costs and environmental risks from brine discharge remain challenges. To address these, the research will propose integrating renewable energy into desalination plants, improving saline waste management, and strategically planning infrastructure based on real water demand. The study will also advocate for increased regional cooperation and the development of a shared water governance framework in the Maghreb.
This research addresses the intersection of water security, environmental sustainability, and socio-economic development in a water-stressed region. It underscores the need for innovative and collaborative water management approaches, positioning desalination as a key pillar for ensuring long-term resilience in the Maghreb.

Improper Waste Disposal in Urban Slums: Evidence from Greater Cairo

Walid Marrouch
,
Lebanese American University
Michael Fheili
,
UN ESCWA

Abstract

With ambitious plans to enhance municipal solid waste management as part of Egypt’s Vision 2030 plan, it becomes increasingly important for policymakers to consider all relevant stakeholders. No study to date evaluates the determinants of waste disposal practices across Egyptian households, let alone those in urban slums. Accordingly, this study investigates the determinants of household solid waste disposal practices in the urban slums of Greater Cairo using data from the Survey of Young People in Informal Urban Areas of Greater Cairo (SYPE-IGC) in 2016. We use a multinomial logistic regression to determine the probability of a household adopting various disposal practices over strictly improper ones, given certain demographic and socioeconomic characteristics. The main results indicate that household wealth, the educational attainment of its head, and the availability of waste services are positively associated with proper household disposal practices. The results from the subsamples reiterate the uneven distribution of waste services.

Lifetime and Intergenerational Labor Market Transitions in MENA: Exploring the Impact of Climate Shocks

Shireen Alazzawi
,
Santa Clara University
Vladimir Hlasny
,
Ewha Womans University
Yasmine Abdelfattah
,
University of Prince Edward Island

Abstract

In a region already marked by inequality, informality, and high youth unemployment, understanding how climate change shapes labor market outcomes is vital. This study investigates how exposure to local climate shocks, specifically extreme temperatures, humidity, and precipitation, affects lifetime and intergenerational labor market mobility in the MENA region. We investigate how climate variability influences individuals' socio-economic trajectories and intergenerational mobility in earnings and occupation.

Using harmonized panel labor market surveys from Egypt, Jordan, Tunisia, and Sudan, we link workers’ labor market histories and family backgrounds to high-resolution, district-level climate data from global sources (NOAA, NASA). We focus on transitions in earnings, occupational status, and job formality across time and generations, estimating transition matrices and multivariate models. By comparing earnings and occupational mobility among individuals exposed to different intensities of climate shocks, and differentiating between high- and low-risk job groups (e.g., outdoor vs. indoor work), we identify patterns of upward or downward mobility. We also impute real earnings in past occupations using contemporaneous sector- and occupation-level earnings data to assess long-term earnings mobility.

To address potential endogeneity of climate exposure, we use lagged and regional weather patterns as instruments. Our analysis considers both direct labor market outcomes and broader dimensions of spatial and occupational mobility.

Preliminary findings suggest that extreme temperatures and humidity reduce upward mobility and earnings persistence, especially for workers in vulnerable sectors. Climate shocks appear to amplify inequalities, with intergenerational effects particularly visible among youth from lower-income households. These results highlight the need for climate-resilient labor policies in a region highly exposed to environmental stress.

This study contributes to the limited but growing literature on the intersection of climate change and labor market dynamics in the Global South and offers critical insights into how environmental stressors may reinforce or reshape long-standing patterns of inequality and mobility in MENA.

Green Innovation in MENA Firms: Evidence from the Enterprise Surveys

Fatma Nur Karaman Kabadurmus
,
University of Wisconsin-Stout

Abstract

As the global economy faces increasing environmental pressures, the transition toward sustainable practices is becoming increasingly important, particularly in emerging regions. This paper uses microdata from the World Bank Enterprise Surveys (2019-2020 Green Economy Module) to examine the extent and determinants of green innovation among firms in selected MENA countries. We focus on environmentally oriented product and process innovations, investigating the influence of institutional quality, export status, firm size, and financial constraints. To that end, we estimate the likelihood of adopting green practices, controlling for firm-specific and institutional characteristics. Our findings indicate significant heterogeneity in green innovation capacity across countries, highlighting that policy incentives and external market connections are crucial for fostering sustainability transitions. The study contributes to the growing literature on green growth and industrial upgrading in the MENA region, with practical implications for policymakers seeking to align economic recovery with environmental resilience.

Sanctions and Export Diversification: Evidence from Oil-rich Countries in the Middle East

Saleh Sahabeh Tabrizy
,
University of Oklahoma
Behnam Zoghi Roudsari
,
Central European University in Vienna

Abstract

This study examines the impact of trade sanctions on export diversification among oil-rich countries in the Middle East. Using HS6 product-level bilateral trade data from 1995 to 2023, we compute a measure for the extensive margin of exports at the origin-destination level for all origins and destinations in the world. The resulting product margin measure captures the variations in export diversification by computing the relative importance of the varieties that are exported by a given country. We, then, focus on ten oil-rich origins in the Middle East, while retaining all their export destinations, and employ a time-varying dyadic sanctions dataset that records trade sanctions imposed by destinations on origins. Relying on gravity models, we find that trade sanctions that are imposed by multiple counties significantly reduce export diversification, lowering the extensive margin of exports by 12%. We also find that complete trade sanctions have a significantly larger impact: they lower the product margin by 41%, with the adverse effect form partial sanction being only about 10%. By demonstrating how trade restrictions reshape export patterns and reduce diversification, our findings contribute to the broader discussion on the economic consequences of sanctions and their implications for trade dynamics in resource-rich economies.
JEL Classifications
  • Q4 - Energy