Financing clean energy projects through domestic and foreign capital: The role of political cooperation among the EU, the G20 and OECD countries

Sudharshan Reddy Paramati, Nicholas Apergis, Mallesh Ummalla

    Research output: Contribution to journalArticlepeer-review

    75 Citations (Scopus)

    Abstract

    There is a growing concern among both individuals and policy makers in relevance to increasing CO2 emissions across the world. As a result, international organizations have started to pressurize economies to minimize their carbon emissions by increasing the share of clean energy consumption in total energy use. Hence, the goal of this paper is to empirically explore to what extent both domestic (stock market) and foreign (FDI inflows) capital affect clean energy uses across the EU, the G20, and OECD, spanning the period 1993–2012. The results of long-run elasticities document that both FDI and stock market developments play a significant role in promoting clean energy uses across all three-country groups. The results also suggest that clean energy consumption has a considerable positive and negative effect on economic output and CO2 emissions, respectively, while the political globalization has a substantial negative impact on carbon emissions across the EU, the G20 and OECD economies.

    Original languageEnglish
    Pages (from-to)62-71
    Number of pages10
    JournalEnergy Economics
    Volume61
    Early online date12 Nov 2016
    DOIs
    Publication statusPublished - Jan 2017

    Keywords

    • Clean energy
    • EU–G20–OECD countries
    • FDI inflows
    • Political cooperation
    • Stock markets

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