IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v194y2024ics0301421524003562.html
   My bibliography  Save this article

Debt as catalyst: Empowering renewable energy in developing countries

Author

Listed:
  • Kushawaha, Deepak
  • Jain, Manisha

Abstract

Financing renewable energy (RE) is essential for transitioning to green energy. Debt finance plays a significant role in shifting from conventional to green energy, with the global percentage of debt financing increasing from 23% in 2013 to 56% in 2020. Previous studies have examined the impact of green finance on RE. This study examines the impact of debt financing on RE capacity in 12 developing countries from 2000 to 2020. Green finance covers various financial tools for environmental sustainability. Therefore, a distinction between green and debt financing impact on RE is essential. The study uncovers a U-shaped relationship between debt financing and RE, suggesting that while initial debt financing may hinder RE deployment beyond a certain level, debt financing promotes RE deployment. The study also draws attention to the influence of financial market conditions, indicating that developing countries can effectively utilize debt finance in favorable financial markets to negate the initial negative impact on RE deployment. These findings offer financial strategists and policymakers valuable insights to support debt financing and increase RE deployment.

Suggested Citation

  • Kushawaha, Deepak & Jain, Manisha, 2024. "Debt as catalyst: Empowering renewable energy in developing countries," Energy Policy, Elsevier, vol. 194(C).
    • Handle: RePEc:eee:enepol:v:194:y:2024:i:c:s0301421524003562
    DOI: 10.1016/j.enpol.2024.114336
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421524003562
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2024.114336?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:194:y:2024:i:c:s0301421524003562. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.