Impact of technological innovation, financial development and foreign direct investment on renewable energy, non-renewable energy and the environment in belt & Road Initiative countries. (June 2021)

• Record Type: Journal Article
• Authors: Khan, Anwar; Chenggang, Yang; Hussain, Jamal; Kui, Zhou
• Is Part Of: Renewable energy. Volume 171(2021)
• Page Start: 479
• Page End: 491
• Publication Date: 2021-06
• Subjects: Financial development -- Foreign direct investment -- Renewable energy -- Technological innovations -- BRI countries; Renewable energy sources -- Periodicals; Power resources -- Periodicals; Énergies renouvelables -- Périodiques; Ressources énergétiques -- Périodiques; 333.794
• DOI: 10.1016/j.renene.2021.02.075
• Languages: English
• ISSNs: 0960-1481

Abstract

Abstract: This study aims to estimate the short-term and long-term impacts of technological innovation, finance, and foreign direct investment on renewable energy, non-renewable energy, and CO2 emissions in 69 countries of the "Belt and Road Initiative (BRI)" from 2000 to 2014. Using robust standard error regression and dynamic GMM estimators, the results showed that technological innovations, economic growth, and foreign direct investment (FDI) have a negative impact on renewable energy. In contrast, financial developments have shown to be a significant positive determinant of the study area's renewable energy sector. The impression of technological innovation, FDI, and economic growth is positive, contributing to energy use and CO2 emissions in the BRI countries. The Granger non-causality test showed two-way causal links between renewable energy, technological innovation, finance, and FDI. The study's practical applications are unique and have policy implications; for example, financial markets in the BRI countries should be promoted because they are the main determinants of the renewable energy sector and economic growth, reducing CO2 emissions. Furthermore, investment in the R&D of technological innovations is much needed in these countries. Graphical abstract: Image 1 Highlights: Technological innovations and renewable energy are empirically tested. Crosectional dependence, homogeneity, and endogeneity is controlled. Finance, and foreign direct investment are empirically tested with renewable, non-renewable, and environment. Finance is significant determinant of renewable energy. Innovations, foreign direct investment, and economic growth are contributing to environment.