Determinants of renewable energy production in emerging and developed countries
International Journal of Energy Sector Management
ISSN: 1750-6220
Article publication date: 5 October 2023
Issue publication date: 15 July 2024
Abstract
Purpose
This study aims to investigate the interrelationships and elasticities between the production of renewable energy (RE) and three key variables: oil prices, gross domestic product (GDP) and carbon dioxide (CO2) emissions.
Design/methodology/approach
The research uses panel data and time-series analyses for 10 developed and 16 emerging countries for the period 1976–2018, to identify panel and country-specific elasticity of RE production and dynamic causal relationships between these variables. The study uses an autoregressive distributed lag model to determine the long- and short-run dynamics between RE production and the three variables in each country.
Findings
Results show a long-run elasticity between RE and GDP, and short-run dynamics between RE and oil prices and CO2 emissions in the developed countries. Whereas in the emerging countries category, there were long-run relationships between RE and GDP, CO2 emissions and oil prices.
Practical implications
Results of this study are in fact crucial and can be applied in the drafting of resilience policies to tackle energy vulnerability as well as sustainable growth. The study results will inform and guide governments on the right policies to stimulate RE production in their own countries in the interests of both their national security and sustainable development globally.
Originality/value
This paper attempts to contribute to the literature in at least two ways. First, research on identifying common determining factors, including socioeconomic factors, in both emerging and advanced economies is considerably scarce. Most of the previous research in this field has focused only on the absolute value of RE production in a particular geographical area. Second, many studies have focused on RE consumption. This research differs from them by focusing on the production of RE. Thus, the main contribution of this study is to fill these gaps. The study also presents novel empirical evidence to determine RE production elasticity from 26 countries.
Keywords
Citation
Elmassah, S. (2024), "Determinants of renewable energy production in emerging and developed countries", International Journal of Energy Sector Management, Vol. 18 No. 5, pp. 1014-1040. https://doi.org/10.1108/IJESM-08-2021-0031
Publisher
:Emerald Publishing Limited
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