Impact of Political, Institutional and Economic aspects on Renewable Energy Penetration in Asian and Pacific Countries /

Abstract

The escalating global environmental degradation has attracted significant attention in global discourse and imposed substantial imperatives on policymakers, regulators, and individuals. The utilization of fossil fuels in energy generation has led to the emission of greenhouse gases, prompting a shift towards green and more sustainable energy sources, such as renewable energy. Despite the considerable contribution of renewable energy for the mitigation of environmental crises, there exist certain constraints that hinder an in-depth understanding of the determinants influencing its adoption. To fill this gap, this research analyzes the relationship among quality of institutions, economic growth, carbon dioxide emissions and renewable energy in 15 states spanning from 1984 to 2020 using panel ARDL-PMG methodology. The results of this study conclude that better institutional quality has a long run positive impact on the penetration of renewable energy. Additional ly, GDP growth is a significant and favorable factor that determines renewable energy penetration. However, CO2 emissions negatively impact renewable energy penetration. Within this framework, the significance of institutional quality measured by the reliability and performance of political as well as regulatory frameworks becomes a critical and deliberate determinant impacting the implementation of renewable energy and mitigates environmental issue.