Search

Financial development and demographic changes have an important impact on the non-hydro renewable energy industry, and this impact is significantly different in countries at different stages of development. This paper studies 10 developed countries and 10 developing countries using annual data from 1990 to 2018. Through the panel cointegration estimation method, the paper evaluates the impact of financial development and demographic changes on the non-hydro renewable energy industry. The empirical results show that the stock market and bank intermediary have a significant role in promoting the growth of the non-hydro renewable energy industry in developing and developed countries. The bond market has a significant positive impact on the growth of the non-hydro renewable energy industry in developed countries only. Foreign direct investment in developing countries significantly promotes the growth of the non-hydro renewable energy industry, while in developed countries it has a negative impact. Population aging has a significant inhibitory effect on the growth of the non-hydro renewable energy industry in developing and developed countries. [ABSTRACT FROM AUTHOR]

Due to the consumption of renewable natural resources caused by population growth, industrialization, and urbanization, renewable resources' effectiveness has become controversial in recent decades. This paper examines the effect of issued green bonds on the effectiveness of renewable natural resource utilization in 15 selected Asia-Pacific countries during 2012–2021. Conducting the Fully Modified Ordinary Least Squares (FMOLS) estimation, the preliminary results confirmed that the issued green bonds have positive and statistically significant impacts on renewable natural resource utilization efficiency in the short-term and long-term. However, the magnitude of the impacts is more extensive in the long-term context. Urbanization has a negative short-term coefficient, while it positively impacts the natural resource utilization efficiency in the long term. Inflation rate negatively affects renewable natural resource utilization efficiency. As practical policies, implementing operational plans to develop the green bonds market, promoting green foreign direct investment, efficient monetary policy to lower inflation rate, and enhancing digital green bonds are recommended. • The green bonds positively impact on green resource consumption efficiency. • Inflation rate is harmful for green resource utilization efficiency. • FDI has only long-term positive impact on green resource utilization efficiency. [ABSTRACT FROM AUTHOR]

Irrefutably, energy transition has recently gathered momentum thanks to the Paris Agreement and renewable energy (RE) falling costs. However, unlocking the full socio-economic potential of energy transition requires encouraging Foreign Direct Investment (FDI) in developing countries where energy demand and the risk of stranded assets are growing. Encouraging FDI in developing countries necessitates addressing two highly controversial issues: measuring political risk and carrying out proper valuation of long-term RE investments. In this regard, current paper investigates the rationale behind classic risk-adjusted discount rate (RADR) approach. It finds that since RADR requires heuristics, it may lead to misrepresentation of real worth of RE projects in developing countries. Addressing this issue, the paper offers a hybrid method based on risk pricing which can incorporate political risk into valuation straightforwardly. The hybrid method is applied to a photovoltaic case in Iran. Surprisingly, while the analysis based on classic RADR approach indicates that the investment is not financially viable, the hybrid analysis demonstrates attractive return on the investment. This can contribute to unlocking a considerable annual amount of 270 TWh solar power in Iran. The empirical study also shows that the suitable rate to discount RE investments in Iran is 10.22%. • Foreign Direct Investment can create a game-changing shift in energy market. • Risks should be reflected in cash flow instead of discount rate. • Sovereign spread is not a good proxy for political risk. • An alternative approach to value renewable energy investments is proposed. • The method can unlock investment in renewables in developing counties. [ABSTRACT FROM AUTHOR]

The environmental impact of foreign direct investment (FDI) is inconclusive, and FDI's different effects are generally explained through various factors. Meanwhile, this paper explores the effect of FDI on renewable energy consumption. Environmental regulation is considered as a moderating variable and a threshold variable simultaneously to capture the nonlinear association between FDI and renewable energy consumption. The panel threshold method was employed for empirical estimations using the dataset of the BRICS countries from 1990 to 2015. In addition, the generalized method of moments (GMM) models—both system GMM and difference GMM models—were applied to verify the robustness of this work. When formal environmental regulation was used as a moderating variable, the empirical results indicate that FDI reduces renewable energy consumption when the degree of regulatory stringency is lower than a threshold level. In addition, it turns to foster renewable energy consumption once the stringency is higher than the threshold. A similar finding was obtained when an informal environmental regulation was considered. Furthermore, the findings suggest that stricter environmental regulation can substantially promote renewable energy consumption emanating from FDI. [ABSTRACT FROM AUTHOR]

Financial sector performance is increasingly linked with the transition to renewable energy in the sustainability discourse of developing economies. This paper examines the nexus and implication(s) of financial development on renewable energy consumption in Nigeria (the largest and most populous economy in Africa). Specifically, this study utilized the broad-based financial development index data to effectively address the multidimensional nature of financial development and the portion of renewable energy in total energy consumption as key variables, while other relevant pieces of information (growth rate of per capita GDP, foreign direct investment and consumer price index) were incorporated. The study employed a blend of the ADF test and Zivot-Andrew test to ascertain stationarity properties as well as the likelihood of structural breaks, while the ARDL was utilized to determine the long-run relationship(s) using data from 1981 to 2019. The study estimation finds, among other things, that financial development is critical for renewable energy consumption in Nigeria and recommends policies to promote better outcomes for the financial and energy sectors, respectively. [ABSTRACT FROM AUTHOR]

This study explores the dynamic effect of non-renewable energy, renewable energy, economic growth, and foreign direct investment on environmental degradation in twenty selected African countries over the period 2000–2015. We have adopted Environmental Kuznets Curve hypothesis and the Pollution Haven/Halo hypothesis simultaneously. In the first stage, this paper performs cross-independence test and found cross-sectional dependence in carbon emissions, non-renewable energy, and renewable energy. In the second stage, it applies first generation and second generation unit root tests for panel data and found that all concerning variables are I(1) except for economic growth which is found I(0). Therefore, we used the Panel Autoregressive Distributed Lag approach using Pooled Mean Group, Mean Group, and Dynamic Fixed Effect estimators. The results indicate that all independent variables are significant and positive to CO 2 emissions except for renewable energy found significant and negative to CO2 emissions, and foreign direct investment found significant and positive only in the long term. Moreover, the Environmental Kuznets Curve hypothesis did not hold in our sample, while we found strong evidence for the Pollution Haven hypothesis in selected African countries. • non-renewable energy, renewable energy, economic growth, and foreign direct investment-CO 2 emissions relationship is investigated. • Positive effect of non-renewable energy and negative effect of renewable energy are found. • The Environmental Kuznets Curve hypothesis does not hold. • The Pollution Haven hypothesis is verified. [ABSTRACT FROM AUTHOR]

One of the strategic objectives of the European Union is to increase the renewable energy consumption level, in a market which brings together technological, financing and customer engagement innovations. However, little is known about the impact of the financial sector on renewable energy consumption. The aim of the paper is to examine the effect of financial development on renewable energy consumption using a panel data of 28 countries in the European Union (EU) over the period 1990–2015. Our research is based on a panel fixed effects model, where renewable energy consumption is given as a function of income, energy prices, financial development, and foreign direct investments. The results of the empirical analysis show that all three different dimensions of financial development (banking sector, bond market, and capital market) have a positive effect on the share of renewable energy consumption. Additionally, our results show that capital market development does not influence renewable energy consumption in the new EU Member States. Our empirical results give valuable insights into how best to deploy capital in the renewable sector, in order to provide cost-competitive options to customers, with the final objective of expanding higher value-added services. • The effect of financial development on renewable energy consumption is analysed. • All three different dimensions of financial development have a positive effect on the share of renewable energy consumption. • The capital market development does not influence renewable energy consumption in the new EU Member States. • Financial development can promote the implementation of green technologies. [ABSTRACT FROM AUTHOR]

China's economy has flourished since reform and opening up. At the same time, China's ability to attract foreign investment in the world continued to increase. However, with the rapid development of the economy, China's energy crisis and environmental pollution have been continuously deepened, exposing increasingly serious problems in the energy consumption structure. As a critical mean to address the environmental problems and achieve sustainable development, the production and utilization of renewable energy resources is particularly critical. This paper aims to investigate the relationship amongst renewable energy consumption, foreign direct investment and gross domestic product in 31 Chinese provinces from 2000 to 2015. Specifically, the unit root test, cointegration test, vector error-correction model, impulse response function analysis, and Granger causality test are employed for the estimations. The empirical results indicate that there is a long-term and stable equilibrium relationship between gross domestic product per capita, foreign direct investment per capita, and renewable energy consumption per capita. Additionally, in the short term, foreign direct investment cannot significantly cause renewable energy consumption change; but in the long run, a modest slowdown in gross domestic product growth and targeted foreign direct investment will generate a significant boost on renewable energy in China. • Relationship amongst renewable energy consumption, GDP and FDI in China is examined. • Vector error correction model and fully modified ordinary least squares are employed. • Long-run equilibrium exists between renewable energy consumption, GDP and FDI. • There is unilateral causality from GDP and FDI to renewable energy consumption in the long run. • FDI cannot significantly cause renewable energy consumption change in the short term. [ABSTRACT FROM AUTHOR]

Abstract This paper investigates the potential of renewable energies utilization in detail through three in-house developed strategies to increase the renewable power generation share until the year 2050 assuming either an optimistic 100% or a practical 50% based on the national policies. Solar, wind, and waste energy are the most feasible alternative energy resources in Iran. In the first strategy, power plants are phased out according to their lifetime and replaced by renewable resources in 5-year time steps. The second strategy employs a 3% replacement rate to reach a 100% renewable power generation in 2050. In the third strategy, the national plan of the power ministry is utilized to adopt a more practical pathway for increasing the renewable power generation share up to 50%. Pollution and water shortage crises are also considered within the framework of this study. The following work can lay the foundation for future studies of its kind in Iran as well as other countries all over the world. Developing the presented results can lead to the practical implementation of the study, which will vastly benefit the residents. Moreover, it will provide a great investment opportunity for foreign and domestic companies working on the field. Highlights • Approach applied to renewable penetration in the power system of Iran. • Three strategies are proposed for transition to 100% renewable. • The storage cost for three scenarios for the year 2050 are calculated. • The storage problem was addressed for various regions of the country. [ABSTRACT FROM AUTHOR]

Abstract: To increase the supply of electricity and reduce environmental pollution, China has made an effort to boost the renewable energy. As a renewable energy, wind energy has been maintaining a rapid growth over the last ten years. China has the largest construction market for wind power in the world, so it attracts many local and foreign investors. However, because of the lack of a full understanding of China''s complicated administrative procedure for wind power projects, many foreign investors have encountered difficulties when trying to enter the Chinese wind power market. According to the relevant laws, regulations, policies and project practices, this paper puts forward a main management procedure model for Chinese wind power projects as well as four subdivided process models, including the Project Approval Process, the Land Application Process, the Design Process and the Licensing and Construction Process. And then the administrative requirements, milestones and main points of works are identified and analyzed within the framework of the four processes. The results open a window through which both the local and foreign investors can perceive a panoramic procedure for wind power project construction in China. [Copyright &y& Elsevier]