Crowdfunding and renewable energy development: What does the data say?

Abstract

Summary For the first time, this paper investigates the relationship between crowdfunding and renewable energy generation for a panel of 32 countries from 2013 to 2018. Applying the instrumental variable generalised method of moment, this study indicated that crowdfunding has a significant positive effect on renewable energy generation. Notably, 1% increase in crowdfunding raises renewable energy generation by 0.35%. Specifically, we also found that crowdfunding spurs the generation of solar energy (0.45%), wind energy (0.37%), and other renewable energy (0.30%) while having a neutral effect on hydroelectricity generation. The findings from the causality analysis showed that there is bi‐directional causality between crowdfunding and renewable energy generation. Country‐specific analysis indicated that China has the highest effect of crowdfunding on renewable energy generation, while the United Arab Emirates has the lowest effect. These findings suggest that policymakers need to advance crowdfunding development by promoting favourable regulations, social capital (trust), and internet infrastructure investment. Policies that advance renewable energy generation, such as subsidies, feed‐in‐tariffs, and technology procurement, are also recommended. Highlights Examines the effect of crowdfunding on renewable energy generation. Use a panel of 32 countries from 2013 to 2018. Crowdfunding drives renewable energy generation. There exists bi‐directional causality between crowdfunding and renewable energy generation. China has the highest effect of crowdfunding on renewable energy generation. NOVELTY STATEMENT This study has, for the first time, measured the contributions of crowdfunding to renewable energy generation. The study has also demonstrated that there exists bi‐directional causality between crowdfunding and renewable energy generation. Finally, this study has shown that China has the highest effect of crowdfunding on renewable energy generation.

The impact of information and communication technology (ICT) on carbon dioxide emissions: Evidence from heterogeneous ICT countries

“…Recently, Alsaleh et al, 76 Alsaleh and Abdul-Rahim, 77 Alsaleh et al, 78 and Alsaleh M and Abdul-Rahim 79 have demonstrated how biomass and hydropower energy technologies can be promoted. Appiah-Otoo et al 40 have also shown how crowdfunding can be used as an alternative source of finance to fund renewable energy technologies. Waqas et al 80 and Farooq et al 81,82 have also espoused how nanofluids can be applied in cooling jet engines, thus helping combat excessive energy consumption.…”

“…These models produce efficient outcomes since they address the issues of endogeneity, omitted variables, and cross-sectional dependence. 40,41 Finally, this research provides policy ramifications to help achieve SDG 13 and combat CC.…”

“…Ref. 40 has also shown how crowdfunding can be used as an alternative source of finance to fund renewable energy technologies. Ref.…”

“…Furthermore, this study applied the IV-GMM technique, the Lewbel 2SLS, and the FE-DK for our empirical scrutiny. These models produce efficient outcomes since they address the issues of endogeneity, omitted variables, and cross-sectional dependence 40,41 .…”

Determining the Optimal Directions of Investment in Regional Renewable Energy Development

“…Appiah-Otoo I. et al [38] explore the relationship between crowdfunding and RE generation for 32 national economies from 2013 to 2018 without considering the regional level. The authors estimate crowdfunding influence on energy generation from different RE sources.…”