Could financial development eliminate energy poverty through renewable energy in Poland?

Abstract

To evaluate the success of the realized policies we need to investigate the historical relationships and assess the impacts of different drivers on the indicator being explored. In this regard, considering the undeniable importance of the transition to renewable energy this work empirically explores the behavior of renewable energy consumption in conjunction with its drivers in the case of Poland. Since one of the main difficulties in front of this transition is financing the projects targeting the successful transition, the study explores the impact of financial development on renewable energy consumption. Having a better idea of the relationship between financial development and renewable energy may provide a potential solution for addressing Poland's energy poverty and attaining the country's renewable energy goals. Utilizing different estimation techniques as a robustness check, we found that financial development and economic growth both are in favor of the transition toward renewable energy consumption. These findings allow concluding that the ongoing policy set-up and circumstances driving the economic growth path are recommended options to follow for achieving better well-being and environmentally friendly economic and social development. Moreover, by increasing investment in renewable energy projects, financial institutions can help Poland's citizens have better access to modern energy services and reduce their dependence on fossil fuels.