Dynamic relationship among climate policy uncertainty, oil price and renewable energy consumption—findings from TVP-SV-VAR approach

The impact of oil prices, financial development and economic growth on renewable energy use

“…Moreover, the strong negative effect of oil prices on RE in this research concurs with the outcomes of studies done so far (Waziri et al , 2018; Sadorsky, 2009; Mukhtarov et al , 2022a; Niu, 2021; Cao et al , 2020), who postulate that oil prices negatively impact RE development. However, the outcomes of the present research do not support the outcomes of other studies done in the past (Mishra and Acharya, 2022; Zhou et al , 2023; Brini et al , 2017), which shows that, the positive strong effect of oil prices on RE is present, and this concurs with Ferrer et al (2018) and Reboredo et al (2017), who present a non-significant link between the two factors. The differences observed are, however, explained by different economic situations that prevail in many regions, hence the significance of a region-specific research for proper policy recommendations.…”

“…To be specific, various studies show that, the influence of oil prices on RE is different in different regions. Other studies, Mishra and Acharya (2022), Zhou et al (2023) and Brini et al (2017), have observed a significant positive effect of oil prices on RE, while others, Waziri, Hassan and Kouhy (2018), Sadorsky (2009), Mukhtarov et al (2022a), Niu (2021) and Cao et al (2020), postulate a negative association between the two. Other studies, Ferrer et al (2018) and Reboredo et al (2017), presented no association between oil prices and RE.…”

“…To be specific, various studies show that, the influence of oil prices on RE is different in different regions. Other studies, Mishra and Acharya (2022), Zhou et al (2023) and Brini et al (2017), have observed a significant positive effect of oil prices on RE, while On the effect of EG and FD on RE development, many studies postulate for a significant positive link. EG and FD are essential in enhancing the development of RE sources (Qin et al, 2021;Saygin and Iskenderoglu, 2021;Mukhtarov et al, 2022aMukhtarov et al, , 2022bAkpanke et al, 2023;Assi et al, 2021;Mukhtarov et al, 2020;Mukhtarov et al, 2018;Shahbaz et al, 2021;Anton and Nucu, 2020;Qin et al, 2021;Saygin and Iskenderoglu, 2021;Anton and Nucu, 2020).…”

“…This shows that, there are mixed findings on the link between oil prices and RE. Mishra and Acharya (2022), Zhou et al (2023) and Brini et al (2017) postulate that, high oil prices result in improvements in RE sources, whereas Waziri et al (2018), Sadorsky (2009), Mukhtarov et al (2022a), Niu (2021) and Cao et al (2020) allude that, high oil prices discourage the development of RE, hence the need to stabilize and reduce oil prices. On the other hand, Ferrer et al (2018) and Reboredo et al (2017) give that, oil prices do not have any effect on RE; hence, a rise or fall in oil prices does not cause any effect in RE.…”

“…While various studies on the impact of oil prices on RE development have been done in various other regions (Mukhtarov et al, 2022a in Iran;Guo et al, 2021 in the G7 countries;Raggad, 2021 in the USA; Alkathery and Chaudhuri, 2021 in the GCC countries;Cao et al, 2020 in China;Wang, Li and Pisarenko, 2020 in the G20;and Brini et al, 2017 in Tunisia), there is still a dearth in the literature specifically for the emerging seven economies. Other studies have observed a significant positive effect of oil prices on RE (see, for instance, Mishra and Acharya, 2022;Zhou et al, 2023;Brini et al, 2017), while other studies present a negative association between the two (see, for instance, Waziri et al, 2018; IJESM 18,2 Sadorsky, 2009;Mukhtarov et al, 2022a;Niu, 2021;Cao et al, 2020), and other studies provide a zero association between oil prices and RE (see, for instance, Ferrer et al, 2018;Reboredo et al, 2017). Therefore, we observe that different regions exhibit different outcomes on the association between RE and oil prices, hence the need to ascertain this association in the emerging seven countries.…”