Document Type : Research Paper
Authors
1 Assistant Professor of Economics, Semnan University, Semnan, Iran
2 Ph.D. Student in Economics-Econometrics, Department of Economics, Semnan University, Semnan, Iran
Abstract
Lack of security, political affiliations, formation, and upsurge of environmental problems are the most significant reasons for altering the approach of energy supply sources from fossil fuels to renewable energy sources. This alteration in approach necessitates a growth in the level of financial support and a rise in the technology level in extracting renewable energies. The purpose of this study is to investigate the effect of diverse methods of financing renewable energy projects, such as foreign direct investment, research and development expenses, and financial market development on the amount of renewable energy consumption for 26 developing countries from 2008 to 2019. The results of the Feasible Generalized Least Squares (FGLS) technique show that foreign direct investment and research and development expenditures have a positive and significant effect on the consumption of renewable energy, while the development of financial markets does not have a significant effect on the consumption of renewable energy. Based on the results, since the defined methods of financing do not have an adverse effect on renewable energy consumption, it is recommended that the government, to guarantee the indicators of the nation's welfare, including environmental quality, put the laws covering these financing methods in the main plan and support.
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