The shocks of armed conflicts to renewable energy finance: Empirical evidence from cross-country data

Qi-Cheng Yang, Mingbo Zheng, Jun-Sheng Wang and Yun-Peng Wang

Energy Economics, 2022, vol. 112, issue C

Abstract: Renewable energy finance may incur an economic or fiscal shock due to uncertainty and destruction from armed conflicts. Using cross-country panel data over the period 1996–2018, this research therefore examines the impact of armed conflicts on renewable energy finance based on linear and non-linear regression techniques. From the linear dynamic panel model we find that armed conflicts exhibit a negative shock on renewable energy finance. The results from the panel threshold model and the panel quantile method show that the impact of armed conflict on renewable energy finance depends on economic development level and renewable energy investment. We also present that armed conflicts generate heterogeneous linear and non-linear effects on wind, geothermal, and solar energy finance. Further analysis shows that armed conflict reduces green innovation through renewable energy finance. Our findings deepen the literature's understanding concerning the impact of armed conflicts on renewable energy finance.

Keywords: Armed conflict; Renewable energy finance; Non-linear effects (search for similar items in EconPapers)
JEL-codes: F36 F42 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:112:y:2022:i:c:s0140988322002687

DOI: 10.1016/j.eneco.2022.106109

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