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Financial development and deployment of renewable energy technologies

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  • Kim, Jeayoon
  • Park, Kwangwoo

Abstract

Using a unique panel data set of 30 countries for the 2000–2013 period, we examine whether financial market development promotes the deployment of renewable energy on a global scale. In particular, we conjecture that countries with well-developed financial markets experience growth in the renewable energy sector due to easier access to external financing. We find that renewable sectors that are relatively more dependent on debt and equity financing grow disproportionately faster in countries with developed financial markets. Our results support the view that financial development leads to a reduction in CO2 emissions by addressing the role of financial markets in deploying renewable energy.

Suggested Citation

  • Kim, Jeayoon & Park, Kwangwoo, 2016. "Financial development and deployment of renewable energy technologies," Energy Economics, Elsevier, vol. 59(C), pages 238-250.
    • Handle: RePEc:eee:eneeco:v:59:y:2016:i:c:p:238-250
    DOI: 10.1016/j.eneco.2016.08.012
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    More about this item

    Keywords

    Financial development; External financing; Deployment of renewable energy technologies;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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