The asymmetric relationship between financial development, trade openness, foreign capital flows, and renewable energy consumption: Fresh evidence from panel NARDL investigation

Qamruzzaman,; Jiang, Wei

doi:10.1016/j.renene.2020.06.069

Cited by 213 publications

(123 citation statements)

References 103 publications

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“…These outcomes of FD have good effects on cost of clean energy and respectably highlights the importance of FD in consumption of renewable energy (Anton and Nucu 2020 ). Financial sector developments enhance usage of renewable energy (Khan et al 2020 ; Mukhtarov et al 2020 ; Qamruzzaman and Jianguo 2020 ). According to Pata ( 2018 ), FD positively affects economic and economic growth may increase environmental pollution.…”

Section: Relevant Literaturementioning

confidence: 99%

“…However, the relationship between financial development (FD) and renewable energy consumption (REC) is complex and remains unclear. Some studies argue that renewable energy consumption enhances financial and economic development (Kemmler and Spreng 2007 ; Vasylieva et al 2019 ), whereas other extant literature found that FD spurs REC (Apergis et al 2020 ; Ji and Zhang 2019 ; Qamruzzaman and Jianguo 2020 ). Since developed countries work on zero-carbon emission plan (for example see Shahbaz et al 2020 ), emerging economies still account for a significant portion of GHG emissions worldwide (Apergis and Garzón 2020 ; Chen et al 2020 ).…”

Section: Introductionmentioning

confidence: 99%

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

Alsagr

Hemmen

2021

Environ Sci Pollut Res

149

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In the past three decades, the significance of large industrialized emerging economies has been highlighted. In terms of economic productivity and CO2 emissions, these markets play an important role in the global environment. Hence, to achieve global environmental needs, transition to renewable energy sources is essential. However, financial constraints along with geopolitical risks could act as possible barriers to the required transition. Thereby, in this paper, we aim to assess the impact of financial development and geopolitical risk on renewable energy consumption in emerging markets from 1996 to 2015. A two-step system GMM is tested, revealing a positive significant effect of financial development on transition to renewable energy. Moreover, contrary to the expected negative effect of geopolitical risk, our results reveal significant positive effect of geopolitical risk on renewable energy consumption. We highlight that the effects of both financial development and geopolitical risk are more pronounced in the long run. Finally, imperative policy implications are highlighted.

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Section: Relevant Literaturementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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

Alsagr

Hemmen

2021

Environ Sci Pollut Res

149

View full text Add to dashboard Cite

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“…Qamruzzaman and Jianguo [27] evaluated the relationship between REC and FD by employing panel nonlinear ARDL to data over the period of 1990-2017 for 113 countries. The panel non-linear ARDL test concluded the presence of a long-run asymmetric relationship between variables.…”

Section: Literature Reviewmentioning

confidence: 99%

The Financial Development-Renewable Energy Consumption Nexus in the Case of Azerbaijan

et al. 2020

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This article analyzed the relationship between financial development, renewable energy consumption, economic growth, and energy prices in Azerbaijan by employing time series data for the time span of 1993–2015. The autoregressive distributed lagged (ARDL) technique was applied in empirical estimations, because it performs better than all the alternative techniques in small samples, which was the case here in this article. The results of estimation found that there is a positive and statistically significant influence of financial development and economic growth on renewable energy consumption, whereas the prices of energy proxied by CPI have an adverse impact on renewable energy consumption in Azerbaijan. Also, estimation results demonstrated that a 1% rise in financial development, proxied by domestic credit as a percentage of GDP, and economic growth increase renewable energy consumption by 0.16% and 0.60%, respectively. The different financial development impacts on renewable energy consumption and related policy implications were also introduced.

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“…[16][17][18][19] The effect of various variables; especially, economic growth, prices, and pollution on RE is a widely studied issue in the literature. For example, financial development, [20][21][22][23][24][25] trade openness, 23,26,27 and globalization 28,29 are recently considered as determinants of RE deployment for small country groups and single countries. As clear from the literature review, only gross domestic product (GDP) (economic growth), oil price, and CO 2 (pollution) are available for a large country group.…”

Section: Introductionmentioning

confidence: 99%

Examining the determinants of renewable energy deployment: Does the choice of indicator matter?

2021

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Comprehending the determinants of renewable energy (RE) deployment has preoccupied the energy literature as well as policymakers internationally due to countries' overall shift away from fossil fuels in the energy mix.As stated in the literature, empirical studies that analyze the determinants of RE deployment use a number of different indicators for RE. The effect of an ambiguous choice of the proxy might produce various outcomes and thus create inconsistencies in the policy recommendations. This study aims at filling this gap in the literature comparing and contrasting not only the use of RE indicators but also, for robustness purposes, using indicators at aggregate and per capita forms for a global sample, developed countries, and developing countries. For the empirical purpose, this study employs two econometric techniques: the pooled ordinary least squares with robust SEs and the augmented mean group estimator, which account for cross- Highlights• This study uses a number of renewable energy indicators to analyze the determinants of renewable energy deployment.

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The asymmetric relationship between financial development, trade openness, foreign capital flows, and renewable energy consumption: Fresh evidence from panel NARDL investigation

Cited by 213 publications

References 103 publications

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

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

The Financial Development-Renewable Energy Consumption Nexus in the Case of Azerbaijan

Examining the determinants of renewable energy deployment: Does the choice of indicator matter?

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