The relationship between financial development and renewable energy consumption: an empirical investigation on emerging countries
by Bertac Sakir Sahin; Semih Yilmazer
International Journal of Sustainable Economy (IJSE), Vol. 13, No. 4, 2021

Abstract: This paper examines the impact of financial development on renewable energy consumption in seven emerging and growth-leading economies from 2001 to 2015. We include some financial development factors such as domestic credit to the private sector, stock market capitalisation, and financial deposits in our linear regression model. Also, we estimate the fixed effects model with feasible generalised least squares (FGLS) based on the Parks-Kmenta method. The results indicate a positive and statistically significant relationship between domestic credit to the private sector and renewable energy consumption. We also find that the effect of stock market capitalisation is positive on renewable energy consumption. Nevertheless, our findings show that financial system deposits do not significantly impact renewable energy consumption. We also include various control variables and conclude that increases in foreign direct investments and urban population negatively affect renewable energy consumption. Considering these results, we evaluate the energy policies of the selected countries.

Online publication date: Fri, 29-Oct-2021

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Sustainable Economy (IJSE):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com