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1 – 10 of over 1000Graeme Newell and Muhammad Jufri Marzuki
Renewable energy infrastructure is an important asset class in the context of reducing global carbon emissions going forward. This includes solar power, wind farms, hydro, battery…
Abstract
Purpose
Renewable energy infrastructure is an important asset class in the context of reducing global carbon emissions going forward. This includes solar power, wind farms, hydro, battery storage and hydrogen. This paper examines the risk-adjusted performance and diversification benefits of listed renewable energy infrastructure globally over Q1:2009–Q4:2022 to examine the role of renewable energy infrastructure in a global infrastructure portfolio and in a global mixed-asset portfolio. The performance of renewable energy infrastructure is compared with the other major infrastructure sectors and other major asset classes. The strategic investment implications for institutional investors and renewable energy infrastructure in their portfolios going forward are also highlighted. This includes identifying effective pathways for renewable energy infrastructure exposure by institutional investors.
Design/methodology/approach
Using quarterly total returns, the risk-adjusted performance and portfolio diversification benefits of global listed renewable energy infrastructure over Q1:2009–Q4:2022 is assessed. Asset allocation diagrams are used to assess the role of renewable energy infrastructure in a global infrastructure portfolio and in a global mixed-asset portfolio.
Findings
Listed renewable energy infrastructure was seen to underperform the other infrastructure sectors and other major asset classes over 2009–2022. While delivering portfolio diversification benefits, no renewable energy infrastructure was seen in the optimal infrastructure portfolio or mixed-asset portfolio. More impressive performance characteristics were seen by nonlisted infrastructure funds over this period. Practical reasons for these results are provided as well as effective pathways going forward are identified for the fuller inclusion of renewable energy infrastructure in institutional investor portfolios.
Practical implications
Institutional investors have an important role in supporting reduced global carbon emissions via their investment mandates and asset allocations. Renewable energy infrastructure will be a key asset to assist in the delivery of this important agenda for a greener economy and addressing global warming. Based on this performance analysis, effective pathways are identified for institutional investors of different size assets under management (AUM) to access renewable energy infrastructure. This will see institutional investors embracing critical investment issues as well as environmental and social issues in their investment strategies going forward.
Originality/value
This paper is the first published empirical research analysis on the performance of renewable energy infrastructure at a global level. This research enables empirically validated, more informed and practical decision-making by institutional investors in the renewable energy infrastructure space. The ultimate aim of this paper is to articulate the potential strategic role of renewable energy infrastructure as an important infrastructure sector in the institutional real asset investment space and to identify effective pathways to achieve this renewable energy infrastructure exposure, as institutional investors focus on the strategic issues in reducing global carbon emissions in the context of increased global warming.
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Mayuri Gogoi and Farah Hussain
This study aims to identify the various economic and non-economic determinants of renewable energy consumption (REC) in Brazil, Russia, India, China and South Africa (BRICS). Due…
Abstract
Purpose
This study aims to identify the various economic and non-economic determinants of renewable energy consumption (REC) in Brazil, Russia, India, China and South Africa (BRICS). Due to the adverse effect of carbon emission on the environment, every country is trying for a transition from fossil fuel towards renewable energy. Renewable energy plays a crucial role in reducing carbon emission and combating climate change. Understanding the determinants that influence REC helps to promote this transition.
Design/methodology/approach
The study is based on an unbalanced panel data over the period 2002–2019 for all five BRICS nations. The panel corrected standard error (PCSE) method has been adopted to examine the determinants of REC.
Findings
Industrialization, population growth and foreign direct investment (FDI) are found to be significant economic determinants of REC while patent on environmental technologies, political instability and industrial design are significant non-economic determinants of REC in the BRICS nations.
Research limitations/implications
The findings imply that to increase REC in BRICS nations, policymakers should incentivize industries for investments in renewable energy, attract FDI aligned with environmental regulations, raise population awareness through training, enforce industrial design standards, establish fair technology transfer frameworks to overcome patent barriers and create stable, long-term renewable energy policies with risk mitigation instruments to address political instability.
Originality/value
The study captures the effect of patents on environmental technologies and industrial design on the consumption of renewable energy. Thus, the novelty lies in investigating unexplored variables in the previous literature likely to affect REC.
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Van Cam Thi Nguyen and Hoi Quoc Le
This study is intended to analyze the impact of information and communication technology (ICT) infrastructure, technological innovation, renewable energy consumption and financial…
Abstract
Purpose
This study is intended to analyze the impact of information and communication technology (ICT) infrastructure, technological innovation, renewable energy consumption and financial development on carbon dioxide emissions in emerging economies.
Design/methodology/approach
The present study adopts the autoregressive distributed lag (ARDL) cointegration technique for the annual data collection of Vietnam from 1990 to 2020.
Findings
The results of the study unveil that renewable energy consumption, the interaction between renewable energy consumption and ICT infrastructure and financial development have significant predictive power for carbon dioxide emissions. In the long term, renewable energy consumption, export and population growth reduce CO2 emissions, whereas the interaction between renewable energy consumption and ICT infrastructure and financial development increases CO2 emissions, while ICT infrastructure does not affect emissions. In the short run, changes in ICT infrastructure contribute to carbon dioxide emissions in Vietnam. In addition, changes in renewable energy consumption, financial development, the interaction between ICT infrastructure and renewable energy consumption and population growth have a significant effect on CO2 emissions. Notably, technological innovation has no impact on CO2 emissions in both the short and long run.
Originality/value
The current study provides new insights into the environmental effects of ICT infrastructure, technological innovation, renewable energy consumption and financial development. The interaction between renewable energy consumption and ICT infrastructure has a significant effect on carbon dioxide emissions. The paper suggests important implications for setting long-run policies to boost the effects of financial development, renewable energy consumption and ICT infrastructure on environmental quality in emerging countries like Vietnam in the coming time.
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Yogeeswari Subramaniam and Nanthakumar Loganathan
Given the importance of green finance in a discussion of energy efficiency and clean energy, it is critical to evaluate its implications for the growth of renewable energy. This…
Abstract
Purpose
Given the importance of green finance in a discussion of energy efficiency and clean energy, it is critical to evaluate its implications for the growth of renewable energy. This study examines the impact of green finance on renewable energy development in Singapore.
Design/methodology/approach
The dynamic ordinary least squares (DOLS) regression was used in this work to test such a connection.
Findings
Using the DOLS for the period 2000–2020, it was discovered that green finance aids renewable energy development in Singapore. Additionally, the findings revealed that economic growth, oil prices, energy consumption, carbon dioxide emissions and institutional factors are all positively associated with renewable energy growth, resulting in a boost in renewable energy development.
Research limitations/implications
Hence, as a result, the monetary authorities of Singapore, such as financial institutions, non-governmental organisations and corporations, should prioritise renewable energy projects under green finance initiatives to boost renewable energy growth. This may assist in raising investment flows to green projects; hence, accelerating the adoption of renewable energy.
Originality/value
Increased Singapore's initiatives to accelerate green finance have prompted this study to examine the research question of whether green finance has a significant impact on renewable energy growth. Thus, to the best of the authors’ knowledge, this will be the first empirical study to explore the impact of green finance on renewable energy growth in the case of Singapore.
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This study aims to examine the impact of renewable energy consumption on agricultural productivity while accounting for the effect of financial inclusion and foreign direct…
Abstract
Purpose
This study aims to examine the impact of renewable energy consumption on agricultural productivity while accounting for the effect of financial inclusion and foreign direct investment in Brazil, Russia, India, China and South Africa (BRICS) countries during 2000–2020.
Design/methodology/approach
The study has used the latest data from World Bank and International Monetary Fund databases. The dependent variable in the study is agricultural productivity. Renewable energy consumption, carbon emissions, financial inclusion and foreign direct investment are independent variables. Autoregressive distributed lag (ARDL) approach was used to examine the short-run and long-run impact of renewable energy consumption, carbon emissions, foreign direct investment and financial inclusion on agricultural productivity.
Findings
The findings imply that consumption of renewable energy, carbon emissions and foreign direct investment have a positive impact on agricultural productivity while financial inclusion in terms of access does not seem to have any significant impact on agricultural productivity. Providing farmers, access to financial services can be beneficial, but its usage holds more importance in impacting rural outcomes. The problem lies in the fact that there is still a gap between access and usage of financial services.
Research limitations/implications
Policymakers should encourage the increase in the usage of renewable energy and become less reliant on non-renewable energy sources which will eventually help in tackling the problems associated with climate change as well as enhance agricultural productivity.
Originality/value
Most of the earlier studies were based on tabular analysis without any empirical base to establish the causal relationship between determinants of agricultural productivity and renewable energy consumption. These studies were also limited to a few regions. The study is one of its kind in exploring the severity of various factors that determine agricultural productivity in the context of emerging economies like BRICS while accounting for the effect of financial inclusion and foreign direct investment.
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Ketki Kaushik and Shruti Shastri
This study aims to assess the nexus among oil price (OP), renewable energy consumption (REC) and trade balance (TB) for India using annual time series data for the time period…
Abstract
Purpose
This study aims to assess the nexus among oil price (OP), renewable energy consumption (REC) and trade balance (TB) for India using annual time series data for the time period 1985–2019. In particular, the authors examine whether REC improves India's TB in the context of high oil import dependence.
Design/methodology/approach
The study uses autoregressive distributed lags (ARDL) bound testing approach that has the advantage of yielding estimates of long-run and short-run parameters simultaneously. Moreover, the small sample properties of this approach are superior to other multivariate cointegration techniques. Fully modified ordinary least square (FMOLS) and dynamic ordinary least squares (DOLS) are also applied to test the robustness of the results. The causality among the series is investigated through block exogeneity test based on vector error correction model.
Findings
The findings based on ARDL bounds testing approach indicate that OPs exert a negative impact on TB of India in both long run and short run, whereas REC has a favorable impact on the TB. In particular, 1% increase in OPs decreases TBs by 0.003% and a 1% increase in REC improves TB by 0.011%. The results of FMOLS and DOLS corroborate the findings from ARDL estimates. The results of block exogeneity test suggest unidirectional causation from OPs to TB; OPs to REC and REC to TB.
Practical implications
The study underscore the importance of renewable energy as a potential tool to curtail trade deficits in the context of Indian economy. Our results suggest that the policymakers must pay attention to the hindrances in augmentation of renewable energy usage and try to capitalize on the resulting gains for the TB.
Social implications
Climate change is a major challenge for developing countries like India. Renewable energy sector is considered an important instrument toward attaining the twin objectives of environmental sustainability and employment generation. This study underscores another role of REC as a tool to achieve a sustainable trade position, which may help India save her valuable forex reserves for broader objectives of economic development.
Originality/value
To the best of the authors’ knowledge, this is the first study that probes the dynamic nexus among OPs, REC and TB in Indian context. From a policy standpoint, the study underscores the importance of renewable energy as a potential tool to curtail trade deficits in context of India. From a theoretical perspective, the study extends the literature on the determinants of TB by identifying the role of REC in shaping TB.
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Jennifer Nabaweesi, Twaha Kigongo Kaawaase, Faisal Buyinza, Muyiwa S. Adaramola, Sheila Namagembe and Isaac Nkote
This study aims to examine the effect of governance on the consumption of modern renewable energy in the East African Community (EAC), controlling for economic growth, trade…
Abstract
Purpose
This study aims to examine the effect of governance on the consumption of modern renewable energy in the East African Community (EAC), controlling for economic growth, trade openness and foreign direct investment (FDI).
Design/methodology/approach
The study relied on secondary data sourced from the World Development Indicators, World Governance Indicators and the International Energy Agency (IEA) for the EAC from 1996 to 2019. A panel Cross-Sectional Augmented Distributed Lag (CS-ARDL) model and second-generation panel data models were employed in the analysis.
Findings
The findings indicate that poor governance and inadequate FDI are significantly responsible for the low level of modern renewable energy consumption (MREC) in the EAC. On the other hand, trade openness significantly enhances MREC, while GDP per capita has no significant effect on MREC.
Originality/value
The consumption of modern renewable energy sources (excluding the traditional use of biomass) and its determinants, as most studies focus on renewable energy consumption as a whole. The study also employed the panel CS-ARDL model and second-generation panel data models.
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Mohammad Almrafee and Mustafa Akaileh
This study aims to examine the influence of various factors on the customers’ purchase intention of renewable energy in Jordan. The hypotheses and model of the study were adopted…
Abstract
Purpose
This study aims to examine the influence of various factors on the customers’ purchase intention of renewable energy in Jordan. The hypotheses and model of the study were adopted from previous studies.
Design/methodology/approach
The present study was undertaken based on an online survey of 428 Jordanians who are nonusers of renewable energy. The sample was selected using a stratified random sampling method using a structured questionnaire method. Data were analyzed using SPSS version 25.
Findings
The results indicated that attitudes, subjective norms (social influence), perceived price, knowledge and perceived behavioral control significantly affect the purchase intention of Jordanian customers to adopt renewable energy. Moreover, the study confirms that there are statistically significant differences between demographic variables such as age, income and education about renewable energy purchasing intentions, whereas gender was not significant.
Research limitations/implications
Some limitations have been identified. First, the generalizability of the findings is one of the common limitations of scientific research, and this study is not an exception. In this regard, the current study has been carried out in the south of Jordan. Therefore, to expand the validity of the findings, future studies need to be attempted in other places in Jordan. Second, the existing study focused on solar panel systems as a form of renewable energy. Future studies could focus on other kinds of renewable energy, such as wind energy. Third, although the sample size of this study was appropriate and sufficient, future studies could use larger samples to enhance the robustness of the results.
Practical implications
The findings of the current study could help practitioners in the renewable energy industry by identifying the key factors that motivate Jordanian customers to purchase and use such technology. They may use the findings of this study in the formulation of marketing policies and the development of marketing strategies to attract more customers to purchase and use renewable energy appliances like solar panels.
Originality/value
This is one of the few studies in the energy industry of Jordan devoted to developing and testing a model of determinants of purchasing intentions for solar panel systems that focuses on renewable energy purchasing behavior. Further, this study used demographic variables as control variables, which makes the study different from other studies by investigating the role of demographic characteristics in the context of the purchase intention for solar panel systems.
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Imran Khan and Darshita Fulara Gunwant
South Asia is one of the fastest-growing regions in the world. With its fast economic development, the energy requirement for the region has rapidly grown. As the region relies…
Abstract
Purpose
South Asia is one of the fastest-growing regions in the world. With its fast economic development, the energy requirement for the region has rapidly grown. As the region relies mainly on nonrenewable energy sources and is suffering from issues like pollution, the high cost of energy imports, depleting foreign reserves, etc. it is searching for those factors that can help enhance the renewable energy generation for the region. Thus, taking these issues into consideration, this paper aims to investigate the impact of macroeconomic factors that can contribute to the enhancement of renewable energy output in South Asia.
Design/methodology/approach
An autoregressive distributed lag methodology has been applied to examine the long-term effects of remittance inflows, literacy rate, energy imports, government expenditures and urban population growth on the renewable energy output of South Asia by using time series data from 1990 to 2021.
Findings
The findings indicated that remittance inflows have a negative and insignificant long-term effect on renewable electricity output. While it was discovered that energy imports, government spending and urban population growth have negative but significant effects on renewable electricity output, literacy rates have positive and significant effects.
Originality/value
Considering the importance of renewable energy, this is one of the few studies that has included critical macroeconomic variables that can affect renewable energy output for the region. The findings contribute to the body of knowledge that a high literacy level is crucial for promoting renewable energy output, while governments and policymakers should prioritize reducing energy imports and ensuring that government expenditures on renewable energy output are properly used. SAARC, the governing body of the region, also benefits from this study while devising the renewable energy output policies for the region.
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Umme Humayara Manni and Datuk. Dr. Kasim Hj. Md. Mansur
Energy security has been talked about by governments and policymakers because the global energy market is unstable and greenhouse gas emissions threaten the long-term health of…
Abstract
Purpose
Energy security has been talked about by governments and policymakers because the global energy market is unstable and greenhouse gas emissions threaten the long-term health of the global environment. One of the most potent ways to cut CO2 emissions is through the production and consumption of renewable energy. Thus, the purpose of this paper is to highlight the drivers that, if ambitious environmental policies are implemented, might improve energy security or prevent its deterioration.
Design/methodology/approach
The study uses a balanced panel data set for Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam that covers a period of 30 years (1990–2020). The pooled panel dynamic least squares is used in this study.
Findings
The findings show that renewable energy consumption is positively related to gross domestic product per capita, energy intensity per capita and renewable energy installed capacity. Wherein renewable energy use is inversely related to per capita electricity consumption, CO2 emissions and the use of fossil fuel electricity.
Originality/value
There is a lack of research identifying the factors influencing energy security in the ASEAN region. Therefore, this study focuses on the drivers that influence energy security, which are explained by the proportion of renewable energy in final energy consumption. Without identifying the demand and supply sources of energy, especially electricity production based on renewable energy techniques, it is hard for policymakers to achieve the desired renewable energy-based outcome.
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