The impact of financial development and geopolitical risk on renewable energy consumption: evidence from emerging markets

Alsagr, Naif; Hemmen, Stefan van

doi:10.1007/s11356-021-12447-2

Cited by 117 publications

(19 citation statements)

References 86 publications

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“…Their results further revealed that in the short run, GPR is the main contributor to the energy transition. Recently, Alsagr and Hemmen ( 2021 ) explored the dynamic impact of GPR and financial development on REC during 1996–2015 in 19 emerging economies. The results of GMM revealed a positively significant influence of financial development on energy consumption.…”

Section: Literature Reviewmentioning

confidence: 99%

Do geopolitical risk and energy consumption contribute to environmental degradation? Evidence from E7 countries

Husnain

Syed

Bashir

et al. 2022

Environ Sci Pollut Res

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Environmental degradation is frequently cited as one of the eminent issues in the modern era. To limit environmental degradation, prior literature discerns several macroeconomic, socio-economic, and institutional factors that affect environmental degradation. However, the relationship between geopolitical risk and environmental degradation is understudied in the previous literature. To fill this gap, the inquiry at hand aims to scrutinize the influence of geopolitical risk on environmental degradation for E7 countries while controlling the effect of renewable energy, non-renewable energy, and GDP. Further, we utilize both the ecological footprint and CO 2 emissions as proxies of environmental degradation and employ second-generation panel methods for robust findings. In addition to this, the present study uses augmented mean group (AMG) estimator to provide long-run relationship among the selected variables. The findings from the AMG estimator expound that there exists environmental Kuznets curve (EKC) for E7 countries. Moreover, renewable energy ameliorates environmental quality because it plunges both ecological footprint and CO 2 emissions. On the contrary, non-renewable energy consumption escalates both ecological footprint and CO 2 emissions. Finally, geopolitical risk tends to decrease CO 2 emissions as well as ecological footprint. Our findings deduce a few policy implications to replenish environmental quality. For instance, the share of renewables in the energy mix should be surged to ameliorate the environmental quality. Further, to control both the geopolitical risk and environmental degradation at the same time, policymakers should put forward reforms and initiatives (e.g., policies to escalate R&D, technological innovations, and tax exemptions on imports of renewables) that can help to improve environmental quality without affecting geopolitical risk. At times of low geopolitical risk, environmental degradation will surge; therefore, the rate of environmental control taxes should be increased by the policymakers.

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Section: Literature Reviewmentioning

confidence: 99%

Do geopolitical risk and energy consumption contribute to environmental degradation? Evidence from E7 countries

Husnain

Syed

Bashir

et al. 2022

Environ Sci Pollut Res

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“…Additionally, geopolitical risk seems to significantly affect the diffusion of RES and energy production [58,59] and has a positive effect on renewable energy consumption [60]. In particular, [58] examined the correlation between geopolitical risk and renewable energy deployment in the United States based on quarterly data for the period of 1973 to 2020, using cointegration analysis and the ARDL approach.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Similarly, [59] finds corresponding results in a similar study focusing on 10 crude oil importer countries for the period of 1985-2017, employing a panel cointegration analysis and the ARDL approach. Similarly, [60] investigated the effect of geopolitical risk on renewable energy consumption in emerging economies over the period of 1996-2015. They employed a two-step system generalized method of moments (GMMs) approach.…”

Section: Literature Reviewmentioning

confidence: 99%

Geopolitical Risk as a Determinant of Renewable Energy Investments

2022

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The advent of various initiatives around the globe in shaping an energy transition towards a “greener” energy production future sparked a research interest towards the determinants that will shape their success. In this paper, we depart from the relevant literature evaluating the potential effect of geopolitical tensions on renewable energy investments, building on an explicit quantitative approach that provides clear empirical evidence. In doing so, we compile a large panel of 171 economies and measure the effect of geopolitical risk on “green” investing as measured by popular geopolitical risk indices, while controlling for all major variables proposed by literature. Our flexible Autoregressive Distributed Lag model with heterogenous effects across economies suggests that geopolitical risk has a significantly measurable effect on green investments both in the short and the long run. In fact, our results suggest that proper model specification is robust across alternate risk assessments. Overall, our study has direct policy implications suggesting that renewable energy could be an important part of our energy mix only if we take into account its linkages with geopolitical tensions.

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“…When it comes to solar and wind energy, countries with plentiful solar and wind resources can employ these energy resources for domestic use with support from renewable energy technology. If renewable energy technologies are developed, these countries may even utilise renewable energy sources with longterm export potential to meet their energy needs in the long run [62]. Costs associated with imports may also affect economic growth.…”

Section: Impacts On the Economymentioning

confidence: 99%

“…For example, they said that increasing the share of renewable energy sources in the economy will cause no harm and could even assist by creating jobs and raising GDP. If external expenses were factored in, the economic benefits of renewable energy might be considerably more significant [62].…”

Section: Impacts On the Economymentioning

confidence: 99%

Renewable Energy: Sources, Integration and Application: Review Article

Mohammed¹

2021

JERR

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Renewable technologies are technically viable and economically attractive; traditional energy technology receives many investment dollars. This study examines the integration of renewable energy sources using functions that associate emissions with power generation; traditional producing units can represent these emissions. The environment friendly design has become a significant concern in the first decade of the 21st century. As a result of climate change and a limited supply of traditional energy sources (fossil fuel), the world needs to take renewable energy seriously. Renewable sources of energy are derived from the energy flow that occurs naturally in a continual manner. Many people define renewability as the ability to regenerate at a rate equal to or faster than a given energy source's depletion rate. Currently, fossil fuels are used to meet most energy needs, which should be replaced in the future by cleaner energy sources, such as renewables or nuclear energy. Building integration systems aim to replace a building element with a solar panel array to boost the RES system's viability. Renewable energy sources can be used to lessen the use of fossil fuels when certain criteria are satisfied. The use of renewable energy sources in buildings has well-understood environmental and economic benefits in this study. By relying on sustainable sources of energy, we can save as much energy as feasible.

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The impact of financial development and geopolitical risk on renewable energy consumption: evidence from emerging markets

Cited by 117 publications

References 86 publications

Do geopolitical risk and energy consumption contribute to environmental degradation? Evidence from E7 countries

Do geopolitical risk and energy consumption contribute to environmental degradation? Evidence from E7 countries

Geopolitical Risk as a Determinant of Renewable Energy Investments

Renewable Energy: Sources, Integration and Application: Review Article

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