Economic growth, human capital, and energy consumption in Algeria: evidence from cointegrating polynomial regression and a simultaneous equations model.

This article aims to empirically analyze the direct and the indirect effects of human capital on energy consumption in Algeria, as well as to test the possible presence of the energy-environmental Kuznets curve (E-EKC) hypothesis, over the period 1970-2017, using cointegrating polynomial regressions (CPR) with break points, and a simultaneous equations model. The obtained results indicate that human capital directly reduces energy demand, and indirectly increases it through income and physical capital stock channels. However, the direct effect is higher than that of the indirect effect.