Navigating the energy crisis: Unveiling the determinants of renewable energy investment

Muhammad Umair Rafiq, Shaham Saleem, Hafsa Bashir and Faiqa Shafqat

Energy, 2025, vol. 332, issue C

Abstract: Renewable energy (RE) investment has become crucial for a sustainable future in the global energy crisis. Unlike previous studies, this research investigates the multifaceted determinants of RE investment, focusing on the role of artificial intelligence (AI), energy uncertainty, energy depletion, and financial development (FD) in twenty-three developing and developed countries from 2000 to 2020. Employing the Method of Moments Quantile Regression, the analysis reveals that AI consistently enhances RE investment by optimizing energy systems. Energy uncertainty elevates RE investment, driven by its critical role in promoting the adoption of sustainable energy sources. Energy depletion significantly enhances RE investment, though its impact lessens as investments increase. FD, while initially limiting smaller-scale investments, becomes crucial for larger investments. These findings highlight key factors that can be leveraged to advance RE investment and promote sustainable energy transitions.

Keywords: Artificial intelligence; Energy uncertainty; Energy depletion; Financial development; Renewable energy investment (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:332:y:2025:i:c:s0360544225028816

DOI: 10.1016/j.energy.2025.137239

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