Which factors influence the decisions of renewable energy investors? Empirical evidence from OECD and BRICS countries

The driving forces behind renewable energy consumption: A comprehensive analysis of key determinants and environmental concerns in ASEAN countries

Renewable energy consumption is a crucial solution to addressing pressing environmental issues, particularly climate change and air pollution. Investigating the factors that drive its adoption is highly significant, as it provides policymakers and stakeholders with valuable insights to accelerate the transition to renewable energy sources. Through this approach, we can minimise the negative consequences of our reliance on fossil fuels, thereby protecting the integrity of the environment. Therefore, the primary goal of this study is to thoroughly investigate the main factors that influence renewable energy consumption and environmental change in six specifically chosen ASEAN countries. The stationarity of the 1990-2019 data was tested using panel data techniques such as Levin, Lin, and Chu (LLC), Im Pesaran (IPS), and the Shin W-stat test. According to the stationarity tests, after the first order, all variables exhibit stationarity. Additionally, Pedroni's co-integration test result confirmed that there was a long-term relationship among the variables. Different methods, such as dynamic ordinary least squares (DOLS), fully modified ordinary least squares (FMOLS), and pooled ordinary least squares (POLS), are used for cointegration estimating. The results suggest that there is a positive co-integration between renewable energy use and GDP in six ASEAN countries, indicating a long-term relationship. The positive relationship between GDP and renewable energy use suggests that economic growth is the primary driving force behind ASEAN's renewable energy adoption. However, factors like carbon emissions, population density, and foreign direct investment (FDI) negatively impact the demand for renewable energy. The limited availability of renewable energy in certain ASEAN countries may discourage foreign direct investment (FDI) due to the inverse relationship between FDI and renewable energy use. The studies also revealed that carbon emissions, which contribute to environmental pollution, do not motivate industries to invest in renewable energy. This finding would challenge the Environmental Kuznets Curve (EKC) hypothesis. According to the EKC, there is a significant transition towards renewable energy as a response to environmental degradation. However, it is worth noting that several ASEAN countries have experienced economic growth while also experiencing higher levels of carbon emissions. Given that economic expansion might not be environmentally beneficial, this research has implications for ASEAN energy policies. The ASEAN region faces a challenge in investing in renewable energy due to the excessive dependence on fossil fuels. Therefore, an in-depth evaluation of the main factor behind ASEAN's environmental concerns, which promotes the adoption of renewable energy, can greatly influence policy decisions, particularly in attaining net zero emissions. Policymakers can utilise this comprehensive analysis to establish informed objectives for policies related to renewable energy and develop strategic plans, i.e. reforming fuel subsidies. The goal is to encourage the development of environmentally friendly and sustainable energy plans for the future in the ASEAN region.

Effect of green taxation on renewable energy technologies: an analysis of commonwealth and non-commonwealth countries in Sub-Saharan Africa

African nations encounter difficulties enforcing regulations and providing incentives for using renewable energy sources. However, several nations are making efforts to encourage renewable energy through financial and tax advantages. Therefore, a shift to renewable energy is essential for African nations to experience sustainable growth and lessen environmental deterioration. Similarly, the extant literature examining green taxes' influence on renewable energy technology has documented equivocal findings. Hence, there is a need for a more thorough investigation. This study, therefore, explores the influence of green taxation on renewable energy technologies of emerging countries in Sub-Saharan Africa. We employed data from a sample of 28 countries of 54 African countries spanning 21 years from 2001 to 2021, providing a panel of 588 country-year observations. The Organisation for Economic Co-operation and Development (OECD) and the World Bank Dataset provided all the study's data. A heterogeneous dynamic panel data modelling using the autoregressive distributed lag (ARDL) has been adopted. The study found that green taxes might be used to mitigate the adverse effects of non-renewable energy activities on the environment in Africa. Considering the findings of the components of green taxes, it was recognised that an increase in energy-related tariffs would lead to a growth in Africa's use of renewable energy. It was further established that an increase in transport taxes increases the adoption of renewable energy technologies in Africa. A comparative analysis between the commonwealth and non-commonwealth countries showed that green taxes of commonwealth countries in Africa significantly contribute to the growth of renewable energy technologies compared to non-commonwealth countries in Africa. Primarily, the results of this study can be a valuable resource for African governments and policymakers as they develop policies and evaluate legislation about the usage of renewable energy sources and other green practices. Finally, the study can shed light on creating and using efficient tax laws that support renewable energy sources.

Intervening long-run fundamentals of fossil energy demand-an effort towards responsible and clean energy consumption

Energy is crucial for growth, but over-reliance on fossil energy undermines sustainability. COP27 has emphasized over transition towards clean energy. Empirical studies have pointed out that energy transition requires infrastructure development which is costly in the short run. Global and national efforts to transition to renewable energy require investigating what matters in global fossil energy demand. While empirical studies have focused on motivating renewable energy, this study explores the determinants of fossil energy in anticipation of reducing its reliance and moving towards sustainable development goals. A non-linear panel quantile ARDL regression was deployed using data from 137 countries and showed that increased forest and natural resource rents and health expenditures are already playing their role. The quadratic models highlighted the importance of optimizing resource rents to nudge the renewable resource decision. Now, policymakers need to intervene in terms of income, education, and fossil energy rents to help households and firms prefer renewable energy sources and move towards sustainability.

How do corporate social responsibility and green finance strategies impact sustainable development in China's renewable energy sector?

As the globe transitions to a low-carbon economy, China's renewable energy (RE) sector is crucial to attaining sustainable growth. Green financing and corporate social responsibility (CSR) strategies have become increasingly important in promoting the growth and sustainability of the RE sector. In order to evaluate CSR factors and green finance strategies for effective integration in supporting the RE industry, this research employs hybrid Fuzzy Analytic Hierarchy Process (FAHP) and Fuzzy VIekriterijumsko KOmpromisno Rangiranje (FVIKOR) approaches in the context of China. The FAHP method is used to determine the various CSR factors and subfactors, while the FVIKOR method is employed to prioritize the key green finance strategies. The findings of the FAHP method highlight the importance of socioeconomic development, environmental protection, and stakeholder engagement as critical CSR factors for RE sectors. Moreover, the results of the FVIKOR method reveal that innovative financing mechanisms, green bonds, and green banks emerged as significant green finance strategies for mobilizing capital and resources for RE projects. The study highlights the value of aspects of CSR and green financing techniques in fostering sustainable development in the RE industry. The results can aid in the promotion of sustainable practices and the assistance of China's transition to a more resource- and environment-wise economy by firms, investors, governments, and other stakeholders.

Does green investments improve air quality? Evidence for developed and developing European countries

The aim of this study is to examine the effect of green investments on air quality for developed and developing European countries. In this context, the short- and long-term effects of green investments on air quality were examined by panel generalized method of moments (GMM) and panel causality method. As a result of the GMM analysis, it has been determined that green investments negatively affect the air quality for both developed European countries and developing European countries in the short term, but this effect turns positive in developed countries in the long term. As a result of the panel causality analysis, two-way causality was determined between air quality and green investments.