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Renewable Energy, Foreign Direct Investment and Sustainable Development: An Empirical Evidence

Author

Listed:
  • Narayan Parab

    (Dnyanprassarak Mandal s College and Research Centre, Goa, India,)

  • Ramashanti Naik

    (Goa Business School, Goa University, Goa 403206, India,)

  • Y. V. Reddy

    (Goa Business School, Goa University, Goa 403206, India,)

Abstract

Renewable energy is replenished on a human timescale. The concern for the use of renewable energy is growing across the globe due to depleting non-renewable sources and various environmental issues. We construct a model of sustainable development to demonstrate the causality and co-integration between FDI inflows and renewable energy consumption. We consider data of select 43 countries for the period 2005 to 2017 and apply panel data analysis. The results reveal a unidirectional causality from renewable energy consumption to FDI inflows and the presence of a long-run relationship. Consequently, the constructed model will assist the government, non-government organizations, and companies in evaluating the significance of renewable energy and FDI inflows in sustainable development.

Suggested Citation

  • Narayan Parab & Ramashanti Naik & Y. V. Reddy, 2020. "Renewable Energy, Foreign Direct Investment and Sustainable Development: An Empirical Evidence," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 479-484.
    • Handle: RePEc:eco:journ2:2020-05-55
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    References listed on IDEAS

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    Cited by:

    1. Mahmoud G. Hemeida & Ashraf M. Hemeida & Tomonobu Senjyu & Dina Osheba, 2022. "Renewable Energy Resources Technologies and Life Cycle Assessment: Review," Energies, MDPI, vol. 15(24), pages 1-36, December.
    2. Bashu Dev Dhungel & Pitambar Lamichhane, 2024. "Emerging Trend and Causes of Discrepancy between Proposed and Actual Flows of Foreign Capital into Nepalese Energy Sector," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 341-348, March.
    3. Balsalobre-Lorente, Daniel & Ibáñez-Luzón, Lucia & Usman, Muhammad & Shahbaz, Muhammad, 2022. "The environmental Kuznets curve, based on the economic complexity, and the pollution haven hypothesis in PIIGS countries," Renewable Energy, Elsevier, vol. 185(C), pages 1441-1455.
    4. Sakib Bin Amin & Yaron Nezleen Amin & Mahatab Kabir Khandaker & Farhan Khan & Faria Manal Rahman, 2022. "Unfolding FDI, Renewable Energy Consumption, and Income Inequality Nexus: Heterogeneous Panel Analysis," Energies, MDPI, vol. 15(14), pages 1-21, July.

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    More about this item

    Keywords

    Renewable Energy; Foreign Direct Investment; Sustainable Development; Causation Effect; Co-integration;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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