Renewable energy consumption, carbon dioxide emission and financial stability: does institutional quality matter?

Quang Khai Nguyen and Van Cuong Dang

Applied Economics, 2024, vol. 56, issue 59, 8820-8837

Abstract: In the context that countries around the world are making efforts to reduce carbon emissions and promote the use of renewable energy, the impact of these issues on the economy is becoming more and more concerned. Our study investigates the impact of renewable energy consumption and carbon dioxide emissions on financial stability and the role of institutional quality in mitigating these effects. Using panel data from 147 countries, including both developed and developing countries, and applying the quantile regression method, this study found that both renewable energy consumption and carbon dioxide emissions reduce financial stability. Moreover, the negative effects of carbon dioxide emissions on financial stability intensify in countries with higher financial stability. Additionally, institutional quality was found to play an important role in mitigating the negative impacts of renewable energy consumption and carbon dioxide emissions on financial stability, especially in countries with high levels of financial stability; the impact was insignificant in developing countries with low levels of financial stability. Our results can be useful for regulators in both developed and developing countries to control the negative impacts of carbon emission reduction and renewable energy policies on financial stability.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2023.2293675 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:56:y:2024:i:59:p:8820-8837

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036846.2023.2293675

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().