Financing Renewable Energy Projects: An Empirical Analysis for Turkey

Bünyamin Er, Yusuf Guneysu, Hüseyin Ünal


The main purpose of this study is to estimate the impact of foreign direct investment (FDI) inflows and stock market capitalization (SMC) on the renewable energy consumption (REC). In addition, the study aims to ivestigate the impact of financial development (FD) and research-development expenditures (R&D) on the renewable energy consumption. The study utilizes annual data from 1990 to2015 inTurkey using the autoregressive distributed lag (ARDL) approach. The findings show that, based on the ARDL estimates, there exist long-run equilibrium relationships among the variables. The results of this study also indicate that the renewable energy consumption is mainly determined by FDI inflows, financial development and research-development expenditures in the long run.

Keywords: Renewable Energy, Foreign Direct Investment, Stock Market Capitalization, ARDL Approach

JEL Classifications: C51, G10, Q42


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