Trade Openness, Economic Growth, Capital, and Financial Globalization: Unveiling Their Impact on Renewable Energy Consumption

Bartosz Jóźwik (), Sevgi Sümerli Sarıgül, Betül Altay Topcu, Murat Çetin and Mesut Doğan
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Bartosz Jóźwik: Department of International Economics, Institute of Economics and Finance, The John Paul II Catholic University of Lublin, 20-950 Lublin, Poland
Sevgi Sümerli Sarıgül: Department of Foreign Trade, Vocational School of Social Sciences, Kayseri University, 38280 Kayseri, Turkey
Betül Altay Topcu: Department of Foreign Trade, Vocational School of Social Sciences, Kayseri University, 38280 Kayseri, Turkey
Murat Çetin: Faculty of Economics and Administrative Sciences, Tekirdag Namik Kemal Üniversity, 59030 Tekirdag, Turkey
Mesut Doğan: Department of Banking and Finance, Vocational School of Bozuyuk, Bilecik Seyh Edebali University, 11100 Bilecik, Turkey

Energies, 2025, vol. 18, issue 5, 1-19

Abstract: Renewable energy sources are becoming increasingly popular due to their advantages over fossil fuels, their economic benefits, and growing environmental concerns. Researchers are particularly focused on understanding the factors that affect the efficiency of various energy sources. This paper explores the relationship between renewable energy consumption and trade openness from 1990 to 2018 among the top 15 countries that consume the most renewable energy. The study also considers economic growth, natural resources, capital, and financial globalization as additional factors influencing renewable energy use. To analyze the data, the paper utilizes advanced panel data techniques, including the dynamic Seemingly Unrelated Regression (DSUR) and Dimutrescu–Hurlin panel bootstrap causality methods. The findings reveal cross-sectional dependence and slope heterogeneity in the model. The results show that trade openness, economic growth, and capital investment promote renewable energy consumption, while financial globalization tends to reduce it. Additionally, the study finds one-way causality from trade openness, economic growth, natural resources, capital, and financial globalization to renewable energy consumption. These insights can inform the development of renewable energy policies in the countries examined.

Keywords: trade openness; renewable energy consumption; dynamic SUR; panel bootstrap causality (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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