ECONOMIC POLICY UNCERTAINTY AND RENEWABLE ENERGY- IS THERE A RELATİON? CASE - STUDY G7

Author:

ÖZARSLAN DOĞAN Başak1ORCID,WİLLİAMS Alfred1ORCID,WİLLİAMS Adedolapo2ORCID

Affiliation:

1. İSTANBUL GELİŞİM ÜNİVERSİTESİ

2. ISTANBUL GELISIM UNIVERSITY

Abstract

Economic uncertainty significantly affects the macroeconomic performances of countries and many sectors. In this context, one of the sectors affected by economic uncertainty is the renewable energy sector. Since the sector in question is a relatively new sector, it is a capi-tal and technology intensive sector with high costs. For this reason, in addition to domes-tic savings, foreign capital flows from abroad are needed in renewable energy investments, as in most investment items, especially in developing countries. Capital flow from abroad depends on the economic stability of the country and the applied economic policy. In this context, in this study, the relationship between economic policy uncertainty and renewable energy investments has been empirically examined for the 1997-2021 period, with the help of Han and Phillips (2010) method in the case of G7 countries. The results show that increases in economic policy uncertainty reduce renewable energy investments in the countries selected as the sample group and throughout the study period.

Publisher

Sinop Universitesi Sosyal Bilimler Dergisi

Subject

General Medicine

Reference66 articles.

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