The impact of geopolitical risks on renewable energy demand in OECD countries

Zhao, Zuoxiang; Gözgör, Giray; Lau, Chi Keung Marco; Mahalik, Mantu Kumar; Patel, Gupteswar; Khalfaoui, Rabeh

doi:10.1016/j.eneco.2023.106700

Cited by 84 publications

(5 citation statements)

References 76 publications

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“…This implies improved socio-economic conditions, such as good governance, and increases awareness of sustainable growth regardless of vulnerabilities, as reasoned by Ariaratnam (2016). Lastly, the interaction of internal and external confl icts with green energy adoption is positive, which aligns with fi ndings of Awosusi et al (2023) and Zhao et al (2023). It is implied that eventful situations over renewable transition are unescapable, but investment support, innovation, resource diversifi cation and effi cient management help incapacitate those confl icts (Akita et al, 2020).…”

Section: Source: Authors' Own Preparationsupporting

confidence: 61%

“…Similarly, geopolitical tension has an adversely signifi cant infl uence on promoting green energy adoption. Zhao et al (2023) examined the connection between geopolitical confl icts and renewable promotion in 20 OECD economies. The study depicted that it lessens the demand for renewable energy while increasing climate abnormalities and badly aff ecting environmental strategies.…”

Section: Internal and External Conflicts And Green Energy Adoptionmentioning

confidence: 99%

“…Following the research objectives and existing literature, this study observes that research and development expenditures (RDE: % of GDP), fi nancial globalization (FGL: index), socio-economic condition (index) and confl ict are the leading factors of greener energy (GRE) adoption (generally referred to as electricity production from renewable sources, excluding hydroelectric, quoted in kWh). In this instance, the present study follows the empirical model of Zhao et al (2023) and constructs the following models, which are given in the regression form:…”

Section: Variables and Modelsmentioning

confidence: 99%

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Role of Research and Development Budgets and Socio-economic Conditions for Greener Energy Transition in Emerging Economies: Do Internal and external conflicts matter?

Pan,

Yang,

Luo

et al. 2024

Politicka ekonomie

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In the contemporary times, with the major conflict of the Russo-Ukrainian War, the global economies are facing several challenges and disputes in various economic, energy, and financial sectors. Still, policymakers and scholars are concerned about exploring factors affecting greener energy. The present study examines the impact of research and development (R&D) budgets, financial globalization and socio-economic conditions on greener energy adoption. Besides, this study considers the role of internal and external conflicts on greener energy adoption in the "Emerging Seven" economies during the period 1990-2020. Using various diagnostic and cointegration tests, the results revealed the presence of cross-sectional dependence, heterogeneous slopes and a longrun equilibrium relationship. This study employes panel quantile regression and finds that R&D budgets, financial globalization, socio-economic conditions and internal and external conflicts significantly promote greener energy adoption. Still, the influence of socio-economic conditions is inconsistent across quantiles. Using the autoregressive distributed lag model as a robustness measure, this study validates the positive impact of variables on greener energy adoption, except external conflicts. However, all the variables adversely influence greener energy adoption in the short run. The empirical results also validate bidirectional and unidirectional causal associations of the variables. Following the results, this study recommends further enhancement in the R&D budgets and financial globalization and limiting conflicts in emerging economies.

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Section: Source: Authors' Own Preparationsupporting

confidence: 61%

Section: Internal and External Conflicts And Green Energy Adoptionmentioning

confidence: 99%

Section: Variables and Modelsmentioning

confidence: 99%

See 1 more Smart Citation

Role of Research and Development Budgets and Socio-economic Conditions for Greener Energy Transition in Emerging Economies: Do Internal and external conflicts matter?

Pan,

Yang,

Luo

et al. 2024

Politicka ekonomie

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“…The economic risks of a wind energy project need to be measured by taking into account such macroeconomic indicators as changes in exchange rates, the refinancing rate, lending rates, the cost of electricity [73,74], etc. Therefore, in our methodology, we propose adapting the principles of the theory of economic capital [75], which reflects the above indicators in the field of renewable energy.…”

Section: Methodology For Assessing Economic Riskmentioning

confidence: 99%

The Role of State in Managing the Wind Energy Projects: Risk Assessment and Justification of the Economic Efficiency

et al. 2023

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Our paper focuses on assessing the role of state funding in supporting wind energy projects with a focus on economic efficiency and risk assessment. In particular, we analyze the new program aimed at supporting Russian renewable energy (RE) projects envisaged for the period from 2024–2035 that involves a reduction in investments in such projects and the introduction of large fines for non-compliance with regulatory requirements for localization and export. These strict rules imposed by the regulatory authorities, as well as the withdrawal by foreign manufacturers of equipment for renewable energy from the domestic energy market, put into doubt the economic feasibility of the participation of sector players in state-supported programs. Our paper assesses the economic justification for the practicality of the Russian energy market to implement renewable energy projects under the influence of negative environmental factors and the reduction of state support programs. We employ a case study of wind energy projects carried out in 2018–2020 as a part of the first sector support program. Our methodology is based on the calculations of the classical indicators of economic efficiency of projects (NPV, IRR, and DPP). Our own approach reveals that these indicators are supplemented by taking into account the cost of specific political, environmental, and economic risks of wind energy projects. Our results reveal that, at the moment, Russian wind energy projects in various scenarios retain a sufficient margin of financial strength and are able to withstand a reduction in the amount of financial support from the state. Our findings allow the formulation of some practical recommendations for reducing the share of governmental support for wind energy projects on the local energy market as a measure of cutting costs and increasing overall economic efficiency.

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“…Their results showed that political and fi nancial risks have a favourable impact on using renewable energy and environmental improvement. Additionally, they found a unidirectional relationship between the variables and verifi ed the environmental Kuznets curve (EKC) theory for these economies Zhao et al (2023). looked at how geopolitical risk aff ects the demand for green energy consumption and growth in OECD nations.…”

mentioning

confidence: 91%

Understanding the Dynamics of Political Economy in Relation to Energy Transition for G7 Economies

Qiu,

Yan,

Badeeb

et al. 2024

Politicka ekonomie

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This research covers the literature gap by investigating the factors of economic expansion (GDP), total natural resources (TNRNT), political risk index (PRI) and technological innovation (TI) and their impact on the renewable electricity output (REOT) in the G7 economies, covering the period 1990-2022. The research utilizes novel MMQREG as the primary method, while BSQR is a non-parametric robustness check method. A pairwise Dumitrescu-Hurlin causality test is employed to find out the causal connection between variables. The diagnostic outcomes show that the modelled variables are static after the first difference while long-run equilibrium is also present. Moreover, the outcomes suggest that GDP negatively influences REOT across quantiles while TNRNT and PRI stimulate the use of REOT in G7 economies across quantiles. Moreover, TI positively influences REOT but is inconclusive across quantiles. The robustness check analysis provides similar and valid outcomes. Lowering political risk is also considered important for energy transition in terms of cleaner energy.

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The impact of geopolitical risks on renewable energy demand in OECD countries

Cited by 84 publications

References 76 publications

Role of Research and Development Budgets and Socio-economic Conditions for Greener Energy Transition in Emerging Economies: Do Internal and external conflicts matter?

Role of Research and Development Budgets and Socio-economic Conditions for Greener Energy Transition in Emerging Economies: Do Internal and external conflicts matter?

The Role of State in Managing the Wind Energy Projects: Risk Assessment and Justification of the Economic Efficiency

Understanding the Dynamics of Political Economy in Relation to Energy Transition for G7 Economies

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