Exploring the economic and non-economic determinants of renewable energy investments: Developed versus developing countries
◈ 주 제 : Exploring the economic and non-economic determinants of renewable energy investments: Developed versus developing countries - Gazi Salah Uddin, Md. Bokhtiar Hasan, Donghyun Park, Md. Sumon Ali
◈ 발표자 : 박동현 (ADB)
◈ 일 시 : 2024년 4월 17일 수요일 12:00 ~ 13:15
◈ 장 소 : 우석경제관(223동) 308호
◈ 주 관 : 경제학부, 경제연구소 한국경제혁신센터, SSK, BK21
Exploring the economic and non-economic determinants of renewable energy investments: Developed versus developing countries
Abstract:
Amid a transformative global energy landscape driven by climate change concerns and fossil fuel depletion, the imperative to transition to sustainable energy is underscored. Despite a notable upsurge in global renewable energy (RE) investments, a substantial gap remains in meeting sustainability targets. Against this backdrop, we are the first to explore the determinants of RE investments, considering a set of critical economic and non-economic factors. We utilize a balanced annual panel dataset covering 36 countries over 21 years (2000-2020), which is further segregated into developed and developing/emerging countries to scrutinize whether these determinants vary across these two country groups. Our findings indicate that in developed countries, industrial growth, environmental tax, social globalization, and climate vulnerability promote RE investments, while inflation and political instability demote. Conversely, in developing countries, environmental tax, social globalization, environmental technologies, and climate vulnerability favorably impact RE investments, while industrial growth and oil prices manifest negative effects. Importantly, a noticeable disparity in the direction and significance of these variables is observed between developed and developing countries. Our quantile-based estimates substantiate these findings but underscore variations in findings across quantiles, offering nuanced insights. Our results carry crucial policy implications, offering actionable insights for governments and policymakers to devise tailored strategies essential for achieving global sustainability targets, including net-zero emissions by 2050.