Evaluation of Green Financing Mechanisms in Renewable Energy Projects and their Impact on Economic Growth in Peru

This study aimed to analyze and quantify the short and long-run impact of agricultural exports to China on economic growth in Peru using an annual time series data from 2001 to 2016 obtained from the Central Bank of Peru, the World Bank, and Trade Map. Agricultural exports value, labour force, and fixed capital formation value for each year of the stipulated period were used as determinant factors of the economic growth. Vector Autoregression (VAR) Model, Augmented Dickey-Fuller test, Johansen Co-integration test, and Granger Causality test was employed for data analysis. The findings revealed that, in the short run, the agricultural sector and agricultural exports value to China have a positive, but non-significant effect on economic growth of Peru. At the same time, both fixed capital formation and labour force have a positive and significant impact on the GDP. ADF test showed that all determinants achieved stationary at a level I (0). Moreover, the Co-integration test result revealed a long-run relationship between the studied variables, and a unidirectional causality in the relationship between all variables and the economic growth except the relationship between the economic growth and the fixed capital formation, which revealed a bidirectional link. This study recommends policy options including the substantial investment in commercialization of agricultural products with added value and human capital development to improve the agriculture sector’s performance in the Peruvian economy as a driver of sustainable economic growth.

This research proposes to analyze the dynamic and causal relationship between electricity consumption, economic growth and carbon dioxide emission in Peru during the period 1995-2019. Based on a Autoregressive Vector Model (EVC), Johansen’s Cointegration and Granger’s Causality tests were used, considering as independent variables the consumption of electricity per capita (EC), Gross Domestic Product per capita (GDP) and carbon dioxide emission per capita (CO2) emissions as independent variables. The results suggest a long-term equilibrium relationship between CO2 emissions, economic growth and electricity consumption, as well as a one-way causal relationship that ranges from economic growth in Peru to CO2 emissions, but not in the sense of electricity consumption. This suggests that Peru is in a scenario of neutrality, that is, public policies aimed at preserving or expanding electricity consumption would not decisively affect economic growth, and vice versa.

This paper examines the relationship between renewable energy (RE) generation, economic factors, infrastructure, and governance quality in ASEAN countries. Based on the Fixed Effects regression model on panel data spanning the years 2002–2021, results demonstrate that domestic capital investment, foreign direct investment, governance effectiveness, and crude oil price exhibit an inverse yet significant relationship with RE generation. An increase in those factors will lead to a decline in RE generation. Meanwhile, economic growth and infrastructure have a positive relationship, which implies that these factors act as stimulants for RE generation in the region. Hence, it is advisable to prioritise policies that foster economic growth, including offering tax breaks specifically for RE projects. Additionally, it’s crucial to streamline governance processes to facilitate infrastructure conducive to RE generation, along with investing in RE infrastructure. This could be achieved by establishing one-stop centres for consolidating permitting processes, which would streamline the often-bureaucratic process. However, given the extensive time period covered, future research should examine the short-term relationship between the variables to address any potential temporal trends between the factors and RE generation.

La presente investigación tuvo como objetivo analizar la relación que existe entre la corrupción y el crecimiento económico del Perú, en el periodo 2010-2019. La metodología tuvo enfoque cuantitativo, tipo básico, diseño no experimental, de nivel relacional, ya que buscó analizar la relación que existe entre la corrupción y el crecimiento económico del Perú, 2010-2019. Fue transversal porque recogió datos en un período determinado; para ello, se aplicó el análisis documental, recogiendo información con el fin de relacionar y medir las variables de estudio, efectuar las regresiones y comparaciones correspondientes. Finalmente, se estableció que existe relación entre la corrupción y el crecimiento económico del Perú, en el periodo 2010-2019. Los resultados determinaron que en el Perú, el crecimiento económico ha descendido en términos de PBI (8.5 al 4.2 %). Se halló que el índice de puntuación de la corrupción del Perú en el periodo 2010-2019 tuvo un promedio del 2.2 al 2.8, situándose en el puesto 35 en el año 2010, y en el puesto 36 en el año 2019 (según el ranking mundial de Transparencia Internacional), evidenciándose una constante en el índice de la corrupción en el Perú.

The present study seeks to analyze the impact of the externalities of investments in infrastructure on economic growth in Peru during the period 2000–2022. The methodology used is quantitative, with a non-experimental and longitudinal design, based on the Solow model, using VAR and VEC to analyze the relationship between investment in infrastructure and economic growth in Peru (2000–2022). The results indicate that the coefficient of variation in private income and the labor force is significantly and positively explained by GDP with an adjusted R2 of 0.94 that explains the variability of the model. It was found that investments in infrastructure and labor have a positive and significant impact on GDP. It is concluded that investments in infrastructure, especially private ones, have had a positive and significant impact on the economic growth of Peru during the period 2000–2022. These investments have acted as a key driver for the recovery and increase in GDP and thus the reduction in unemployment, while externalities, such as improvements in connectivity and productivity, have been fundamental for strengthening long-term economic development.

Renewable energy production and consumption has a triggering effect on the components associated with the energy sector. This study aims to analyze the effects of renewable energy generation and consumption on economic growth in Türkiye for the period 1990-2020 based on annual data. For the analyses in the study, the vector autoregression model (VAR) and Johansen cointegration test, vector error correction, and Granger causality are used for the data of renewable energy consumption (REC, percentage of total final energy consumption), renewable electricity generation (REG, per capita electricity generation from renewables), and economic growth (GDP constant 2010 US$). According to the findings from the study, no causality was found from production to gross domestic product from renewable energy consumption in the short run, but causality from renewable energy consumption to gross domestic product was found. In the long run, it can be said that renewable energy consumption is not the cause of gross domestic product, but gross product is the cause of renewable energy consumption.

Since 2000, the Peruvian economic policy presented a positive impact on the economic growth thanks to Foreign Direct Investment (FDI) increase and the inclusion of foreign markets in the local economy. This study analyzes and quantifies the short and long-run impact of FDI and Foreign Direct Investment from China (FDICH) on economic growth in Peru, using annual time series data from 2001 to 2018 obtained from the Central Bank of Peru and the World Bank. Vector Autoregression (VAR) Model, Augmented Dickey-Fuller test, Johansen Co-integration test, and Granger Causality test were employed for data analysis through the production function. The findings revealed the impact and significance of FDI and FDICH in the short and long-run, which were positive and significant. Moreover, the Co-integration test (for long-run relationship) was positive, and the causality test in the relationship between all variables and the economic growth revealed the directionality of these links.

Introduction/Purpose: Inclusive economic growth is a concept that has taken on importance in recent years globally; however, it has scarcely been studied in Peru. This research aims to know if there exists a positive relationship between inclusive economic growth and international trade in Peru in the period 2000-2021. Methodology: Inclusive economic growth was measured using the pillars of growth and development (per capita GDP, labour productivity, employment, and life expectancy) and inclusion (income concentration and poverty) of the Inclusive Development Index (IDI) proposed by the World Economic Forum. The Ordinary Least Squares (OLS) method was used to perform the regressions. Findings: The results show that the growth of International Trade in Peru has a positive relationship with two of the indicators of inclusive economic growth analysed: real GDP per capita and Vulnerable Employment. In contrast, it has a negative relationship with Labour Productivity. There is no statistical significance for the Poverty variable. Furthermore, there is no cointegration between Peruvian International Trade and Life Expectancy at Birth or Income Distribution. Conclusions: Therefore, it is concluded that inclusive economic growth has a positive relationship with Peruvian International Trade. The study focuses on four development pillars and two inclusion pillars, so the analysis will serve to propose policies that promote inclusive economic growth in Peru.

This research explores the relationship between income inequality and economic growth in Peru, focusing on the decade from 2007 to 2017. Using the Gini coefficient as a measure of income inequality and GDP annual growth rates as an indicator of economic performance, this study analyses the impact of wealth disparities on Peru's economic trajectory. Peru, with its rapidly growing economy, provides a compelling case to examine whether economic expansion leads to reduced inequality or exacerbates social disparities. The results reveal that, while early periods of strong economic growth coincide with reductions in inequality, this trend stagnates in later years, suggesting that growth alone may not be sufficient to further alleviate income disparities and vice versa. The study highlights the importance of government interventions, social safety nets, and redistributive policies in ensuring that the benefits of economic growth are equitably across different socioeconomic groups. The findings challenge the assumption that economic growth automatically reduces inequality, emphasizing the need for targeted policies in developing countries. This research contributes to the broader understanding of the complex dynamics between income inequality and economic growth, offering policy recommendations aimed at fostering a more equitable distribution of wealth in Peru.

“Social capitalism” in renewable energy generation: China and California comparisons

This study examined contemporary financial mechanisms and instruments that facilitate investment in renewable energy sectors. The research methodology employed statistical analysis of electricity production and consumption data from renewable sources across the European Union and Ukraine. The findings demonstrated that the European Union has experienced substantial growth in renewable electricity generation, primarily attributable to effective investment attraction strategies. In contrast, Ukraine exhibits inconsistent development patterns in its renewable energy sector. The analysis underscored the correlation between robust financial frameworks and successful renewable energy adoption. While the European Union has implemented cohesive mechanisms yielding demonstrable results, Ukraine’s renewable energy landscape reflects the consequences of less stable financial infrastructure. Total generation in the European Union increased from 750.9 thousand GWh in 2014 to 1,130.2 thousand GWh in 2023, which indicates a stable expansion of the sector. The most promising financial instruments were green bonds, which allow attracting significant capital investments for environmental projects, and energy cooperatives that contribute to the decentralisation of energy and the development of local communities. The mechanisms of financing renewable energy in the agricultural sector of European Union countries, in particular Germany, France, Poland, and the Netherlands, were analysed. The research examined the implementation of renewable energy within the agriculture sector, exemplified by RWE (Germany) and Astarta-Kyiv (Ukraine). It was shown that government subsidies, concessional lending, international investment, and corporate finance mechanisms played an important role in overcoming barriers. Ensuring sustainable financing of renewable energy in Ukraine requires an integrated approach, including active attraction of public, private, and international investment

Natural gas, trade openness and economic growth in Peru: 1965–2022

The purpose of this research is to estimate the dynamic impacts of foreign direct investments (FDI) and exports on economic growth in Peru (1970–2020) using annual series. Starting with the theoretical Mundell–Fleming static model with assumptions, we find that the change in exports does not affect GDP, and the effect of FDI on GDP can be positive or negative depending on the comparison between the slopes of the IS and LM curves. The variables are foreign direct investment net flow (% of GDP), exports of goods and services (% of GDP), and GDP growth rate (%). FDI and exports constitute first-order integrated processes; meanwhile, the GDP growth rate is a stationary process. The Granger causality evidences feedback between GDP and exports and the FDI-led growth hypothesis. Considering the dependent variable GDP growth rate, the autoregressive distributed lag cointegration bound test shows the findings regarding the cointegration consist of positive long-term equilibrium impacts from exports and FDI on GDP. Estimating an error correction model, in the short-term, the FDI explains to GDP and the exports have an insignificant impact on economic growth in Peru. Finally, we conclude that Peru’s economic policy path should continue to attract foreign capital to increase FDI.

Egypt’s Vision 2030 delineates a comprehensive national strategy aimed at fostering sustainable development, with a particular emphasis on environmental conservation and economic advancement. Central to this vision is the integration of green finance instruments, notably green bonds, as pivotal tools for realizing environmental objectives while driving economic growth. However, the successful implementation of green bonds faces multifaceted challenges, including market dynamics, regulatory frameworks, and the establishment of robust monitoring mechanisms. This research conducts an in-depth exploration of the intricate relationship between green bonds, environmental sustainability, and economic development within the context of Egypt’s Vision. Drawing on a synthesis of academic literature and insights gleaned from international case studies, the study critically evaluates the mechanisms for implementing green bonds. It also identifies the financing challenges and opportunities inherent in Vision green economy aspirations, while proposing strategic pathways to enhance the efficacy of green bond deployment. Formulating a set of research hypotheses, the study examines the alignment of green bond implementation mechanisms with Vision 2030 objectives, evaluates the impact of market perceptions and regulatory frameworks on green bond financing effectiveness, and assesses the role of international collaborations in mitigating financing challenges. Furthermore, the research explores key variables such as environmental impact, green bonds, and financial sustainability to elucidate their interconnections and implications for sustainable development. By offering nuanced insights and actionable recommendations, this research aims to enrich the discourse on sustainable development and financial innovation in Egypt. It seeks to bridge existing knowledge gaps, inform strategic decision-making processes, and facilitate the formulation of evidence-based policies conducive to realizing Egypt’s sustainable development aspirations outlined in Vision 2030. Keywords: Egypt’s Vision 2030, Green Bonds, Sustainable Development, Financial Innovation, Environmental Sustainability, Economic Growth.

Application of an advanced real options approach for renewable energy generation projects planning