Work

Institutional Quality, Foreign Direct Investment, and Renewable Energy Production: Evidence from Eastern European Countries Using a Panel VAR Model

Year: 2025

Type: article

Abstract: Renewable energy is crucial for mitigating climate change, stabilizing energy prices, and preventing energy crises; however, governance quality and foreign direct investment (FDI) in promoting clean energy development are often overlooked. Renewable energy production depends on political decisions and capital, technology, and expertise provided through FDI. This paper examines how institutional quality and FDI inflows affect renewable energy production. We analyze data from 1996 to 2022 across 12 Eastern European countries with growing economies and potential for renewable energy development. Our findings reveal that these countries cannot meet the institutional quality standards and FDI inflows required for renewable energy development.

Source: International Journal of Energy Economics and Policy

DOI: 10.32479/ijeep.20680

Authors: Amir Mohammad Esmaeili Korani, Shahi Md.Tanvir Alam, Hamidreza Rahro, Mohammad Javad Bakhtiaran

Institutions: University of Szeged, Silesian University in Opava, Islamic Azad University, Tehran, Tarbiat Modares University

Language: English

Topic: Energy, Environment, Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Affordable and clean energy, Industry, innovation and infrastructure, Climate action, Partnerships for the goals, Decent work and economic growth

Open Access status: gold

Estimated APC paid: $590