 Energy policy uncertainty, financial development and public-private investment in BRIC nationsQian Chen Finance Research Letters, 2025, vol. 71, issue C Abstract: The transition to sustainable energy systems requires substantial investment, yet the impact of policy uncertainty on investment decisions remains poorly understood, particularly in emerging economies. While previous studies have examined various determinants of energy investment, the interplay between energy policy uncertainty (EPU) and financial sector development (FSD) in shaping public-private energy investments has received limited attention. This study investigates how EPU influences public-private energy investments in BRIC nations and examines FSD's moderating role. Using an ARDL model on data from 1998–2022, we find that EPU significantly deters investment, while FSD exhibits a positive influence. Notably, FSD moderates the negative impact of EPU, suggesting that robust financial sectors can buffer against policy uncertainty's adverse effects. These findings provide crucial insights for policymakers in emerging economies, highlighting the importance of stable policy frameworks and developed financial markets in facilitating energy transition investments. Keywords: Energy policy uncertainty; Financial development; Public-private investment; Energy Transition; BRIC Nations; Investment Risk (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:71:y:2025:i:c:s1544612324014466 DOI: 10.1016/j.frl.2024.106417 Access Statistics for this article Finance Research Letters is currently edited by R. Gençay More articles in Finance Research Letters from Elsevier |
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