The Impact of Economic Freedom on Renewable Energy Investments Efficiency

Marinescu, Corina

doi:10.5593/sgem2014/b53/s21.059

Cited by 4 publications

(4 citation statements)

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“…Trade freedom through the composition effect may accelerate the transformation of an agrarian economy into industrial and finally into the services sector that is relatively less associated with pollution. Marinescu and Fucec [28] also point to the fact that economic freedom promotes efficiency in renewable energy investments. Thus, unnecessary government interference in such freer markets on the continent could be counterproductive.…”

Section: Discussionmentioning

confidence: 99%

“…Similarly, Marinescu and Fucec [28] used economic freedom as a measure of institutional quality to examine the impact of economic freedom on the efficiency of renewable energy investments and inflows for five European countries. Using panel data spanning the period 1995 to 2011, and employing two linear regression models, the study indicated that economic freedom positively affects renewable energy investments in Germany and Greece.…”

Section: Institutions and Renewable Energy Consumptionmentioning

confidence: 99%

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Renewable energy consumption in Africa: the role of economic well-being and economic freedom

et al. 2020

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This study investigates the role of economic well-being and economic freedom as drivers of renewable energy consumption using the share of renewables in total energy consumption in Africa. To achieve this, the study employs a panel data of 32 African countries over the period 1996-2017. To deal with identification challenges associated with panel time-series data, we use the Dynamic Ordinary Least Squares econometric technique. As part of our findings, first, we have evidence that increasing economic well-being in Africa increases the share of renewables in total energy consumption to a point after which it turns negative (inverted U shape). Second, the disaggregated measures of economic freedom show that both property rights and tax burden decrease the share of renewables in total energy consumption. On the contrary, an increase in trade freedom and business freedom measures increases the share of renewables in total energy consumption. Toward the goal of promoting access to affordable, reliable, sustainable, and modern energy for all by 2030, governments in Africa should actively encourage trade freedom and business freedom to enhance the share of renewable energy consumption. Similarly, reducing the tax burden will promote the share of renewable energy consumption. Likewise, we call for further investigation into our evidence of a negative relationship between property rights and the share of renewables in total energy consumption.

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Section: Discussionmentioning

confidence: 99%

Section: Institutions and Renewable Energy Consumptionmentioning

confidence: 99%

Renewable energy consumption in Africa: the role of economic well-being and economic freedom

et al. 2020

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“…Furthermore, Schall [49] noted that green investors are more eager to invest in renewable energy projects if they expect both financial and "psychic return". Moreover, Marinescu and Fucec [50] applied an econometric approach to model two linear regression models based on panel data of five European countries for 1995-2011. The findings confirmed that economic freedom is directly proportional to investments in the renewable energy sector.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Factors Influencing the Renewable Energy Consumption in Selected European Countries

et al. 2021

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The overcoming of the issues on energy crisis and inequality have become the priorities as far developing as developed countries are concerned. Moreover, energy inequality has increased due to the shortage of natural gas and rising energy prices in retaliation to the economic recovery affected by the COVID-19 pandemic. This study aims to verify the linkage between the growth of renewable energy consumption and the country’s economic advancement. In this context, this paper determines the main driving forces of renewable energy consumption in European countries during 2000–2018. The annual data for panel regression analysis are retrieved from the OECD. Stat and World Bank Open Data. This empirical analysis employed a set of estimation procedures such as the panel unit root test (Levin, Lin & Chu; Im, Pesaran, Shin W-Stat; ADF-Fisher Chi-square; and PP-Fisher Chi-square methods), the Pearson correlation, fixed- and random-effects models, generalized method of moments (GMM), Hausman and the robustness tests. The results from the Hausman test ratified that the fixed-effects regression model is more suitable for involved panel balanced data. The results of fixed-effects regression and GMM identified the statistically significant and positive relationship between the share of renewable energy consumption of total final energy consumption, GDP per capita, and CO2 emissions per capita for the overall sample. In turn, the total labor force, the gross capital formation, and production-based CO2 intensity are inversely related to renewable energy consumption. The identified effects could provide some insights for policymakers to improve the renewable energy sector towards gaining sustainable economic development.

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“…Elde edilen bu sonuçlar, ülkenin emek piyasasının özgürlüğünün arttırılması ve parasal istikrarının sağlanması ile yenilenebilir enerji tüketiminin toplam enerji tüketimi içerisindeki payının arttırılabileceğini göstermektedir. Söz konusu sonuç, Marinescu & Fucec (2014)'in ekonomik özgürlüklerin geneli için yapmış olduğu çalışmanın sonuçları ile örtüşmektedir. Asıl ilginç sonuç, yatırım ve finansal özgürlüğün arttırılması ile yenilenebilir enerji tüketiminin toplam enerji tüketimi içerisindeki payının azalmasına yönelik elde edilen sonuçtur.…”

Section: Sonuçunclassified

Examining the Effect of Economic Freedoms on Renewable Energy Using Panel Data Method

ÖZÇELİK,

ÖNDER

2023

BILTURK

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The efforts of developing countries to achieve development and the efforts of developed countries to maintain their welfare levels are constantly increasing the demand for energy due to the growing population. The pressure to meet this increasing energy demand from renewable energy sources is also increasing due to environmental issues. However, on a global scale, the desired level of renewable energy has not yet been reached. In recent years, there has been a growing trend in academic research on this topic. Various studies have examined the factors that influence renewable energy determinants.One of the goals of this study is to examine the economic freedoms that affect the share of renewable energy in total energy consumption. The study used data from 146 countries for the years 2010-2019. The panel data analysis conducted in the study found that labor and monetary freedoms increase the share of renewable energy in total energy consumption, while freedoms in the investment and finance sector decrease it. Therefore, it is considered that the government can address the inverse effect in the investment and finance sector with incentives and guarantees.

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The Impact of Economic Freedom on Renewable Energy Investments Efficiency

Cited by 4 publications

References 0 publications

Renewable energy consumption in Africa: the role of economic well-being and economic freedom

Renewable energy consumption in Africa: the role of economic well-being and economic freedom

Factors Influencing the Renewable Energy Consumption in Selected European Countries

Examining the Effect of Economic Freedoms on Renewable Energy Using Panel Data Method

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