How does Financial Stability Affect Renewable Energy Investment?

Authors

  • Naif Alsagr Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh, Saudi Arabia
  • Samir Belkhaoui Faculty of Economics and Management of Mahdia, Monastir University, Tunisia
  • Sidra Sohail Advanced Research Centre, European University of Lefke, Lefke, Mersin, Turkey
  • Ilhan Ozturk College of Business Administration, University of Sharjah, Sharjah United Arab Emirates; & Faculty of Economics, Administrative and Social Sciences, Nisantasi University, Istanbul, Turkey.

DOI:

https://doi.org/10.32479/ijeep.20905

Keywords:

Financial Stability, Renewable Energy Investment, CS-ARDL

Abstract

There is no doubt that financial stability is crucial for the sustainable economic growth of a nation. Nevertheless, whether it has any role in aiding renewable energy investment is an empirical question that has not received much consideration in the past. Therefore, our primary goal is to examine the role of financial stability in promoting renewable energy investment in top-polluting economies from different regions of Asia, Africa, America, and Europe. To that end, our selected estimation technique is CS-ARDL. Our long-run results reveal that financial stability and GDP cause renewable energy investment to rise in all regions except Africa. On the other hand, carbon emissions and ICT favorably influence renewable energy investment in all regions. The short-run estimates are insignificant in most instances. Since financial stability is crucial for promoting renewable energy investment, policymakers must focus on a more stable financial sector, and financial stability should be part and parcel of any policy design to promote renewable energy investment.

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Published

2025-08-20

How to Cite

Alsagr, N., Belkhaoui , S., Sohail, S., & Ozturk, I. (2025). How does Financial Stability Affect Renewable Energy Investment?. International Journal of Energy Economics and Policy, 15(5), 539–546. https://doi.org/10.32479/ijeep.20905

Issue

Vol. 15 No. 5 (2025)

Section

Articles

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