TY - JOUR

T1 - Proven reserve oil and renewable energy nexus: Efficacy of policy stringency

AU - Husain, Shaiara

AU - Sohag, Kazi

AU - Wu, Yanrui

N1 - The long-run parameter of financial development (FD) indicates a negative relationship with SR and LR for OECD economies. Our finding implies that FD shares a positive connection with the increment in non-renewable energy usage and, therefore, a negative relation with REP. The projects and investments funded by the financial institutions and markets do not patronize renewable manufacturers' growth and counterbalance development in renewable energy technologies in OECD countries. Financial resources invested and administered by the private sector predominantly invest in environmentally hazardous projects in OECD countries. A similar finding is confirmed for the European countries where FD has an inarguable relation with pollution or non-renewable energy consumption ( Al-Mulali et al., 2015 ).

PY - 2024/3/1

Y1 - 2024/3/1

N2 - Pro-environmental technologies, environmental taxes and environmental protection expenditure are three important policy tools for patronizing renewable energy production (REP) in OECD countries. With this background, we evaluate the efficacy of environmental policies in promoting renewable energy production by applying the CS-ARDL method and panel data of 24 OECD economies incorporating the role of proven reserve oil during 1990–2022. The empirical analysis of this study demonstrates that the environmental policy stringency, encompassing market and non-market approaches, is positively affiliated with the growth in REP. Our findings also affirm the proposition that proven oil reserves are antagonistic to the growth of renewable energy production considering the intergenerational energy security aspect. Positive shock in oil price augments the renewable energy production validating the substitution effect between renewable energy and non-renewable energy. Our findings are robust when alternative measures of policy stringency, considering both supply-side (cost-push) and demand-side (demand-pull) socio-technical incentives are used. The empirical findings reinforce existing market-based mitigation policies to promote renewable energy production adhering to the energy security agenda of sustainable development goals.

AB - Pro-environmental technologies, environmental taxes and environmental protection expenditure are three important policy tools for patronizing renewable energy production (REP) in OECD countries. With this background, we evaluate the efficacy of environmental policies in promoting renewable energy production by applying the CS-ARDL method and panel data of 24 OECD economies incorporating the role of proven reserve oil during 1990–2022. The empirical analysis of this study demonstrates that the environmental policy stringency, encompassing market and non-market approaches, is positively affiliated with the growth in REP. Our findings also affirm the proposition that proven oil reserves are antagonistic to the growth of renewable energy production considering the intergenerational energy security aspect. Positive shock in oil price augments the renewable energy production validating the substitution effect between renewable energy and non-renewable energy. Our findings are robust when alternative measures of policy stringency, considering both supply-side (cost-push) and demand-side (demand-pull) socio-technical incentives are used. The empirical findings reinforce existing market-based mitigation policies to promote renewable energy production adhering to the energy security agenda of sustainable development goals.

UR - http://www.scopus.com/inward/record.url?partnerID=8YFLogxK&scp=85185392430

UR - https://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcAuth=tsmetrics&SrcApp=tsm_test&DestApp=WOS_CPL&DestLinkType=FullRecord&KeyUT=001196760100001

U2 - 10.1016/j.resourpol.2024.104835

DO - 10.1016/j.resourpol.2024.104835

M3 - Article

VL - 90

JO - Resources Policy

JF - Resources Policy

SN - 0301-4207

M1 - 104835

ER -