Evaluating the role of renewable energy investment resources and green finance on the economic performance: Evidence from OECD economies

Abstract

Recently, economic performance is considered as the global requirement because of the environmental uncertainty and energy resources issues that gained the attention of recent literature and governments or policymakers. Therefore, the primary goal of the present study is to examine the impact of renewable energy investment as well as the investment in different resources of renewable energy such as geothermal, solar, bio energy, hydropower and wind power project and green finance on the economic performance of organization for economic co-operation and development (OECD) economics. The authors have taken the secondary data from 2001 to 2019 that are extracted from the international renewable energy agency (IRENA), global green finance index (GGFI) and world development indicators (WDI). The current article has used the generalized methods of moment (GMM) and fixed-effect (FEM) model to explore the nexus among the said variables. The results indicate that renewable energy investment resources and green finance have significant and positive effect on the economic performance of selected economics. This study provides help to the future researchers while exploring this area and also guides the policy makers regarding making the policies for the economic performance and renewable energy resources investment.