Institutional Quality, Foreign Direct Investment, and Renewable Energy Production: Evidence from Eastern European Countries Using a Panel VAR Model

Authors

  • Amir Mohammad Esmaeili Korani Doctoral School in Economics, Faculty of Economics and Business Administration, University of Szeged, Hungary
  • Shahi Md.Tanvir Alam Visiting Researcher, School of Business Administration in Karviná, Silesian University in Opava, Czech Republic
  • Hamidreza Rahro Financial Management Institute, Faculty of Human Science, Islamic Azad University, Iran
  • Mohammad Javad Bakhtiaran Economics Institute, Faculty of Economics and Management, Tarbiat Modares University, Iran

DOI:

https://doi.org/10.32479/ijeep.20680

Keywords:

Eastern Europe, FDI, Institutional Quality, Renewable Energy Production, VAR

Abstract

Renewable energy is crucial for mitigating climate change, stabilizing energy prices, and preventing energy crises; however, governance quality and foreign direct investment (FDI) in promoting clean energy development are often overlooked. Renewable energy production depends on political decisions and capital, technology, and expertise provided through FDI. This paper examines how institutional quality and FDI inflows affect renewable energy production. We analyze data from 1996 to 2022 across 12 Eastern European countries with growing economies and potential for renewable energy development. Our findings reveal that these countries cannot meet the institutional quality standards and FDI inflows required for renewable energy development.

Downloads

Published

2025-10-12

How to Cite

Esmaeili Korani, A. M., Alam, S. M., Rahro, H., & Bakhtiaran, M. J. (2025). Institutional Quality, Foreign Direct Investment, and Renewable Energy Production: Evidence from Eastern European Countries Using a Panel VAR Model. International Journal of Energy Economics and Policy, 15(6), 334–345. https://doi.org/10.32479/ijeep.20680

Issue

Vol. 15 No. 6 (2025)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.