scholarly journals The Impact of Financial Development On The Clean Energy Transition In MENA Region: The Role of Institutional And Political Factors.

2021 ◽  
Author(s):  
Haifa Saadaoui
Keyword(s):  
Renewable Energy ◽  
Financial Development ◽  
Energy Transition ◽  
Transition Process ◽  
Clean Energy ◽  
Mena Region ◽  
Political Factors ◽  
Long Run ◽  
The Impact

Abstract This study focuses on the role of institutional factors as well as financial development in renewable energy transition in Middle East and North Africa (MENA) region over the period 1990-2018 using the ARDL PMG method. The investigation of long-run and short-run analysis confirms that institutional and political factors play a key role in promoting the transition to renewable energy, and shows that improving these factors can lead to decarbonization of the energy sector in the long run. Another important finding is that global financial development does not have a significant effect on the transition process in the long run, implying that the whole financial system needs a fundamental structural change to accelerate the substitution between polluting and clean energies. However, in the short term, the impact appears to be negative and significant, highlighting the inadequacy of financial institutions and financial markets in promoting the region’s sustainable path. Moreover, income drives the transition to renewable energy in both short and long term. The causality results show that both financial development and institutional quality lead to renewable energy transition, while there is a bidirectional link between income and renewable energy.This study can provide a very useful recommendation to promote a clean transition in the MENA region.

scholarly journals Unlocking Opportunities in Renewable Energy Technologies in Africa: The Role of Development Financial Institutions

2021 ◽  
Vol 12 (1) ◽  
pp. 92-110
Author(s):  
Oluwaseun Viyon Ojo
Keyword(s):  
Climate Change ◽  
Renewable Energy ◽  
Financial Institutions ◽  
Energy Transition ◽  
Clean Energy ◽  
Global Energy ◽  
Renewable Energy Technologies ◽  
Energy Technologies ◽  
The Impact

Climate change and global warming are undeniably undermining global development with developing or emerging economies being the worse hit in this unfortunate development. In recent times, it has become necessary to adopt effective adaptation measures that mitigate the impact of climate change on the social, political, and economic environment. A global shift to low-carbon energy technologies through the gradual integration of renewable energy resources in the global energy mix has been generally proposed. Whilst legal and regulatory initiatives are indeed crucial in driving this global energy transition, it is equally imperative that the necessary capital is unlocked to finance the construction, development, and expansion of renewable energy projects in Africa. This paper focused on examining the impact of renewable energy technologies on climate change mitigation, and analysed the role of Development Financial Institutions (DFIs) in unlocking the vast opportunities associated with renewable energy technologies or projects, with a view to driving the clean energy transition in Africa.

scholarly journals Nexus between Economic Policy Uncertainty and Renewable Energy Consumption in BRIC Nations: The Mediating Role of Foreign Direct Investment and Financial Development

Energies ◽  
2021 ◽  
Vol 14 (15) ◽  
pp. 4687
Author(s):  
Yongliang Zhang ◽  
Md. Qamruzzaman ◽  
Salma Karim ◽  
Ishrat Jahan
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Financial Development ◽  
Direct Investment ◽  
Clean Energy ◽  
Policy Uncertainty ◽  
Energy Integration ◽  
Renewable Energy Consumption ◽  
Long Run

In recent literature, the impact of economic policy uncertainty (EPU) on macro aspects have been investigated, but the aspect of energy, precisely renewable energy still to explore. The motivation of the study is to produce fresh evidence regarding the nexus between EPU and renewable energy consumption (REC) with the mediating role of forcing direct investment (FDI) and financial development (FD) in BRIC nations for the period 1997q1–2018q4. The study applied unit root tests following Ng-Perron and Zivot and Andrews for detecting variable’s stationary properties. The long-run cointegration was evaluated by implementing Bayer, Hanck combined the cointegration test, Bound testing approach, and tBDM test. Both linear and non-linear ARDL were implemented to evaluate long-run and short-run shocks, and directional causality was assessed through a non-granger causality test. Furthermore, the study implemented robustness by implementing fully-modified OLS, dynamic OLS, and canonical cointegrating regression (CCR). Unit root test established the variables are stationary after the first difference; moreover, the Bayer and Hanck cointegration test confirmed the long-run association between EPU, FD, FD, and REC in BRIC nations. Accruing to ARDL estimation, adverse effects running from EPU to REC both in the long run and short run. Furthermore, the positive statistically significant linkage revealed for FDI and FD to REC implies that clean energy integration could be augmented with continual inflows of FDI and development of the financial sector. Model estimation with asymmetric assumption, the study documented asymmetric effects running from EPU, FDI, and FD to renewable energy consumption, especially in the long run. Finally, the directional causality revealed unidirectional causality between REC and EPU, whereas the feedback hypothesis was disclosed for FDI and REC] and FD and REC. Study findings postulated that the role of foreign direct investment and financial development is critically significant because technological advancement and capital investment augment clean energy integration through the application of renewable energy.

scholarly journals Does Combined Heat and Power Play the Role of a Bridge in Energy Transition? Evidence from a Cross-Country Analysis

2019 ◽  
Vol 11 (4) ◽  
pp. 1035 ◽  
Author(s):  
Hyo-Jin Kim ◽  
Jeong-Joon Yu ◽  
Seung-Hoon Yoo
Keyword(s):  
Power Generation ◽  
Renewable Energy ◽  
Electricity Generation ◽  
Nuclear Power ◽  
Energy Transition ◽  
Parameter Estimate ◽  
Combined Heat And Power ◽  
Cross Country ◽  
The Impact

In an era of energy transition involving an increase in renewable energy and a reduction in coal-fired power generation and nuclear power generation, the role of combined heat and power (CHP) as a bridging energy is highly emphasized. This article attempts to look empirically into the impact of increasing the share of renewable energy in total electricity generation on CHP share in total electricity generation in a cross-country context. Data from 35 countries during the period 2009–2015 were used, and the least absolute deviations estimator was applied to obtain a more robust parameter estimate. The results showed that a 1%p increase in the share of renewable energy significantly increased the CHP share by 0.87%p. Therefore, the hypothesis that CHP serves as bridge energy in the process of energy transition was established.

scholarly journals Opening new markets for clean energy: The role of project developers in the global diffusion of renewable energy technologies

2018 ◽  
Vol 20 (4) ◽  
pp. 553-587 ◽  
Author(s):  
Bjarne Steffen ◽  
Tyeler Matsuo ◽  
Davita Steinemann ◽  
Tobias S. Schmidt
Keyword(s):  
Developing Countries ◽  
Renewable Energy ◽  
Home Country ◽  
Clean Energy ◽  
Solar Pv ◽  
Spatial Spillovers ◽  
Energy Technologies ◽  
Mixed Method Design ◽  
The Impact

AbstractAs renewable energy supply chains have grown increasingly globalized, national clean energy transitions have become highly influenced by international dynamics. However, these dynamics are themselves collectively shaped by domestic policy that drives the deployment of renewables. While spatial spillovers of domestic renewable energy policies have been studied on an aggregate level regarding policy diffusion or the flows of technology across countries, implications on an actor-level have been largely neglected. This article addresses this gap by analyzing global patterns of market openings for wind, solar PV, and biomass, focusing on the role of private project developers in developing countries. We use a mixed method design, based on a newly merged dataset encompassing eighty countries, and on interviews with pioneering project developers. Results highlight how patterns in market openings are shaped considerably by technology characteristics. Further, empirical results show international private developers are a key first mover in many developing countries. We explore drivers for this internationalization trend, including the impact of international developers' home country policies and the accumulation of tacit knowledge from home country markets for market openings abroad. Finally, we discuss implications for industrial policy and argue for further research on global spillovers of national policies on the actor-level.

scholarly journals Renewable energy and adaptation to climate change

2021 ◽  
Vol 3 (2) ◽  
pp. 111-121
Author(s):  
Marta Stoian
Keyword(s):  
Climate Change ◽  
Sustainable Development ◽  
Renewable Energy ◽  
Energy Transition ◽  
Clean Energy ◽  
Energy System ◽  
Adaptation To Climate Change ◽  
Current Climate ◽  
Holistic Understanding ◽  
The Impact

Climate change is an unprecedented challenge in human history. It requires further immediate and concerted action. Understanding the stage of development of each energy resource, as the impact on the energy system to make informed decisions and prescribe a healthy energy future has thus become a priority. Decisions such as the phasing out of fossil fuels and the transition to an efficient and 100% renewable energy system, as well as increasing the storage capacity of greenhouse gases using environmentally sustainable approaches, maintaining natural ecosystems that generate environmental services, and restoring the degraded ones are now a top issue. Therefore, the relationship between energy and environmental policy is becoming essential. Accordingly, this paper will focus on the transition to renewable energy, the adaptation to climate change and the energy transition at EU level being strenuously debated, in order to build a holistic context of the actual situation. Adaptation to climate change requests a complex scientific study, given the diversity of uncertainties involved, and the interconnections between different areas, such as agriculture, sustainable development or energy industry. Therefore, the aim of research is to provide holistic understanding of the current climate issues, according to the mentioned fields. In this context, it is emphasized the benefits of clean energy by investigating the methods for achieving a prolific energy transition, from a conventional to a sustainable one. Carefully analysing the commitments and the transition to a low-carbon electricity system looking behind the causes and studying closely the underlying elements of all these topics, using the qualitative research method as a basis to indulge in further analysis and research, it was outlined a detailed analysis of the current climate context. In conclusion, the effect of the pressure brought into play by human exploitation of goods and services on the ecosystems was associated with the ongoing concerns of environmental degradation, climatic variations, natural and ecological distortions, and financial setbacks. Taking into account the drive toward accomplishing sustainable development and environmental quality, powerful policies are being implemented, but given the variety of investment conditions in each country and including the different characteristics of the financial markets, there is no unique solution that works for everybody. Therefore, the transition to a more sustainable energy system has a verity of implications but it is an essential condition for sustainable development.

Accelerating the Economic Recovery in Indonesia Post Covid-19: Justice in the Energy Transition

2020 ◽  
Vol 1 (2) ◽  
pp. 140-148
Author(s):  
Theresia Betty Sumarno ◽  
Andang Bachtiar ◽  
Artody Nugroho Jati
Keyword(s):  
Economic Development ◽  
Renewable Energy ◽  
Energy Supply ◽  
Fossil Fuels ◽  
Energy Transition ◽  
Transition Process ◽  
Energy Development ◽  
Economic Recovery ◽  
Renewable Energy Development

Indonesia is known as the largest economy in South East Asia and as one of the emerging lower-middle-income countries. Before the pandemic Covid-19, Indonesia forecasted its GDP growth to increase to 5.5% in 2020. However, this never happened following the pandemic it decreased to 2.97% in the first quarter of 2020. This paper focuses on the renewable energy role in accelerating the economic recovery in Indonesia by emphasising the role of justice in the transition process. We conduct systematic reviews from different sources, both primary and secondary resources. We qualitatively analyse the energy regulation and energy road map in Indonesia as well as some academic research articles. Indonesia has developed its general energy plan related to the energy mix demand and supply, which includes a long-term plan on developing renewable energy sources and reducing the use of fossil fuels. As the fourth most populated country in the world, Indonesia still focusses on cheap energy supply and energy access to fulfil the energy demand. Therefore the transition process in Indonesia is considered slow compared to the OECD countries. There is a significant role of energy in economic growth, both energy consumption and energy resources. Until now, fossil fuels have dominated the Indonesian energy supply and demand. This paper highlights the role of renewable energy in the economic development of the country. This paper suggests that the pandemic has highlighted the energy transition movement in Indonesia. The Covid-19 has driven more research on the role of renewable energy project to the economic development and demonstrate that a transition to a low-carbon economy could contribute to the economic recovery in a justice way in many sectors. Renewable energy development contributes directly to human resources development, and this development also contribute to health sector improvement. Finally, this renewable energy development could accelerate the economic recovery in Indonesia and reach 5.2 to 5.6% in 2021.

scholarly journals Regional Electricity Models for Community Energy in Germany: The Role of Governance Structures

2021 ◽  
Vol 13 (4) ◽  
pp. 2241
Author(s):  
Moritz Ehrtmann ◽  
Lars Holstenkamp ◽  
Timon Becker
Keyword(s):  
Renewable Energy ◽  
Business Models ◽  
Energy Transition ◽  
Governance Structures ◽  
Business Networks ◽  
Sustainable Innovation ◽  
Value Propositions ◽  
Energy Companies ◽  
Desk Research

Community energy actors play an important role in the energy transition, fostering the diffusion of sustainable innovation in the renewable energy market. Because market conditions for business models in the renewable energy sector are changing and feed-in-tariff (FiT) schemes expiring, community energy companies are in the process of innovating their business models. In recent years, several community energy companies in Germany have entered the electricity retail market selling locally generated electricity from their renewable energy installations to customers in their region. We explore the evolving regional electricity business models for community energy companies in Germany, related governance structures, and the role they play for a sustainable energy transition. In order to implement these complex business models, community energy companies cooperate with professional marketing partners (intermediaries), which are capable of taking over the tasks and obligations of electricity suppliers. Through a series of expert interviews and desk research, we identify three distinctive regional electricity business models and examine opportunities and challenges to their implementation. Results show that there are different forms of cooperation, leading to specific governance structures and creating a set of new value propositions. Through these forms of cooperation, business networks emerge, which can function as incubators for sustainable innovation and learning for the post-FiT era.

Reinvigorating the role of clean energy transition for achieving a low-carbon economy: evidence from Bangladesh

2021 ◽  
Author(s):  
Muntasir Murshed ◽  
Zahoor Ahmed ◽  
Md Shabbir Alam ◽  
Haider Mahmood ◽  
Abdul Rehman ◽  
...  
Keyword(s):  
Energy Transition ◽  
Clean Energy ◽  
Low Carbon ◽  
Low Carbon Economy ◽  
Carbon Economy

scholarly journals DEFINITION OF DRIVING FACTORS FOR DESIGNING SOCIAL INNOVATIONS IN THE ENERGY SECTOR

2021 ◽  
Vol 1 ◽  
pp. 891-900
Author(s):  
Iban Lizarralde ◽  
Audrey Abi Akle ◽  
Mikhail Hamwi ◽  
Basma Samir
Keyword(s):  
Renewable Energy ◽  
Social Innovation ◽  
Energy Transition ◽  
Clean Energy ◽  
Energy Sector ◽  
Social Innovations ◽  
Main Factors ◽  
Definition Of ◽  
Energy Community ◽  
New Criteria

AbstractCurrent development of renewable energy systems (RES) is characterised by an increasing participation of citizens in the upstream decision-making process. These citizens can be future users of the RES but also members of a Renewable Energy Community that develop RES. They can be at the same time Renewable Energy producer, investor and consumer. Moreover, several type of businesses and terms are used to cope with social innovations within the energy sector: local renewable projects, sustainable energy communities or community of renewable energy production. So, actors' engagement opens new solutions for designers who are induced to share alternatives before making decisions. They usually impose constraints since the early phases of the design process. This approach implies for designers to consider new criteria related to citizens motivations and barriers. This paper presents a study to define the main factors that drive people to contribute in social innovation schemes for clean-energy transition. After a state of the art, a survey about 6 main factors and 18 criteria is presented. The analysis based on the responses from 34 participants (i.e. experts) reveals 2 most important factors of motivation and 2 principal barrier sources.

Territorial Governance of EU Cross-Border Renewable Energy Cooperation: A Soluble or Turbulent Model in the Current Framework?

2021 ◽  
Vol 2 (1) ◽  
pp. 79-97
Author(s):  
Melis Aras
Keyword(s):  
Renewable Energy ◽  
Large Scale ◽  
Planning Process ◽  
Renewable Energy Sources ◽  
Local Level ◽  
Energy Transition ◽  
Clean Energy ◽  
Legal Framework ◽  
Development Planning ◽  
Cross Border

The energy transition in Europe requires not only the implementation of technological innovations to reduce carbon emissions but also the decentralised extension of these innovations throughout the continent, as demonstrated by the ‘Clean Energy for All Europeans’ package. However, decentralised energy generation, and specifically electricity generation, as it gives rise to new players and interactions, also requires a review of the energy planning process. In this sense, governance becomes the key concept for understanding the implementation of the energy transition in a territory. This is particularly visible in a cross-border setting, especially considering cross-border cooperation in the development of renewable energy sources (RES) provides the necessary elements to determine the criteria of local regulation between the different levels of governance. In light of the current legal framework in France, this paper presents the institutional framework of the multi-level governance of the RES development planning process. It concludes that it is quite conceivable for the rationales of governance at the local level (decentralisation) and the large-scale operation of a large interconnected network (Europeanisation) to coexist.

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