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Is the geopolitical risk an incentive or obstacle to renewable energy deployment? Evidence from a panel analysis

Osama Sweidan ()

Renewable Energy, 2021, vol. 178, issue C, 377-384

Abstract: This study explores the effect of geopolitical risk on renewable energy deployment, assuming that geopolitical uncertainty stimulates nations to be independent and rely on their renewable energy sources in order to reduce the geopolitical risk concomitant to fossil fuel inflows. The current paper's data sample covers 10 net crude oil importer countries during the period 1985–2017. It employs panel cointegration analysis and estimate an autoregressive distributed lag model. The results show that geopolitical risk has a significant and positive effect on renewable energy diffusion. Therefore, this work determines that it is an incentive, not an obstacle, to renewable energy deployment. The present study's policy implication is that renewable energy development is expected to increase if the geopolitical risk rises, all else being equal.

Keywords: Renewable energy spread; Renewable energy incentives; Renewable energy obstacle; Energy policy; Panel analysis (search for similar items in EconPapers)
JEL-codes: C33 Q40 Q42 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1016/j.renene.2021.06.089

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