Transitioning ecological footprint: Private investment trends in renewable energy projects among G10 nations

Feipeng Zhuang, Huilin Han, Muhammad Ahsan and Athar Iqbal

Renewable Energy, 2025, vol. 251, issue C

Abstract: The urgent need for sustainable energy transition and the role of private investment in accelerating renewable energy adoption require deeper analysis, especially in the context of the G10 nations. This study examines private sector investment trends in renewable energy projects from 1990 to 2023, employing Historical Event Analysis (EHA) to assess the impact of macroeconomic stability, regulatory frameworks, and fossil fuel reliance using data from the International Finance Corporation Group's Corporate Partnership in Renewable Energy Initiatives. Findings indicate that private investment is significantly higher in countries with stable economic conditions, strong financial incentives, and well-structured legal frameworks, which facilitate renewable energy deployment, job creation, and economic growth. However, investment disparities persist, highlighting the necessity for unified strategies to attract funding and ensure long-term energy transformation. The results further reveal that periods of economic downturn or policy uncertainty discourage investment, whereas clear regulatory commitments and financial support mechanisms enhance investor confidence. Policymakers must establish a harmonized investment climate, integrating financial incentives and stable policy frameworks, to align business interests with global sustainability objectives effectively.

Keywords: Private sector investment; Policy frameworks; Global sustainability objectives; Renewable energy; Fossils fuels (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:251:y:2025:i:c:s0960148125009978

DOI: 10.1016/j.renene.2025.123335

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