Examining the relationship between renewable energy adoption and economic development in the United Arab Emirates

This research aims to assess the impact of renewable energy policies, investments, and emissions reductions toward achieving net-zero targets by 2050. We analysed key metrics using the Net Zero Tracker (NZT), including renewable energy capacity, policy strength, financial investment, and carbon emissions across multiple regions and industries. Our methodology involved data collection from 2020 to 2050, utilising predictive modeling to project trends in renewable energy adoption and emissions reduction. Key findings show that renewable energy capacity is expected to surpass 1000 GW by 2050, with an exponential increase around 2045. Policy Strength Index (PSI) will grow by 20 %, from 50 in 2020 to 60 in 2050, while investments in renewable energy will rise from $10 billion to $25 billion over the same period. Emissions are projected to steadily decrease to zero by 2050, which aligns with net-zero goals. The margin of error in the projections is ±5 %, considering potential policy implementation and technology development variations. These results underscore the critical role of enhanced policies, sustained investments, and international cooperation in accelerating the global transition to renewable energy. The research offers valuable insights for policymakers and stakeholders to guide future strategies for achieving a sustainable energy future.

ABSTRACTReducing GHG emissions and mitigating climate change would require significant investments in renewable energy technologies. Foreign direct investments (FDI) in renewable energy (RE) have increased over the last years, contributing to the diffusion of RE globally. In the field of climate policy, there are multiple policy instruments aimed at attracting investments in renewable energy. This article aims to map the FDI flows globally including source and destination countries. Furthermore, the article investigates which policy instruments attract more FDI in RE sectors such as solar, wind and biomass, based on an econometric analysis of 137 Organisation for Economic Co-operation and Development (OECD) and non-OECD countries. The results show that Feed in Tariffs (FIT) followed by Fiscal Measures (FM), such as tax incentives and Renewable Portfolio Standards (RPS), are the most significant policy instrument that attract FDI in the RE sector globally. Regarding carbon pricing instruments, based on our analysis, carbon tax proved to be correlated with high attraction of FDI in OECD countries, whereas Emissions Trading Schemes (ETS) proved to be correlated with high attraction of FDI mainly in non-OECD countries.Key policy insightsFeed in Tariffs is the most significant policy instrument that attracts FDI in the Renewable Energy sector globally.Fiscal Measures (FM), such as tax incentives, show a significant and positive impact on renewable energy projects by foreign investors, and particularly on solar energy.Carbon pricing instruments, such as carbon taxation and emissions trading, proved to attract FDI in OECD and non-OECD countries respectively.Public investments, such as government funds for renewable energy projects, proved not as attractive to foreign private investors, perhaps because public funds are not perceived as stable in the long run.

This study investigates the impact of financial, trade, and economic openness on energy consumption, focusing on renewable, nonrenewable, and fossil energy sources in Belt and Road Initiative (BRI) nations. The BRI framework, introduced by China in 2013, emphasizes economic collaboration and infrastructure development, including renewable energy projects. As participating nations navigate energy transitions to address climate change and achieve sustainable development, understanding the role of openness is crucial. Motivated by the dual challenges of energy security and environmental sustainability, this study explores how openness influences energy consumption patterns and identifies pathways for policy intervention. Using data from 2004 to 2020, the study employs advanced econometric techniques, including Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) and Nonlinear ARDL models, to examine short- and long-term relationships. Control variables such as urbanization, financial development, and education are integrated to provide a comprehensive understanding of the dynamics. The analysis reveals that financial openness positively impacts energy consumption across all types, with a significant contribution to renewable energy in the long term. Trade openness facilitates technology transfer and renewable energy adoption, while economic openness through foreign direct investment (FDI) supports clean energy projects but also sustains fossil fuel reliance in some contexts. Urbanization drives nonrenewable energy demand but offers opportunities for renewable integration contingent on governance quality. Education enhances renewable energy consumption by fostering a skilled workforce and knowledge development. The findings suggest key policy implications. First, financial openness should be directed toward green finance and renewable energy investments. Second, trade policies must focus on reducing barriers to renewable technology imports and fostering global collaborations. Third, economic openness should prioritize sustainable FDI in clean energy sectors. Fourth, urban planning must incorporate decentralized energy systems and green technologies. Finally, investing in education and institutional reforms is essential to drive innovation and ensure effective governance. This study contributes to the discourse on energy transitions in BRI nations, emphasizing the critical role of openness and offering actionable policies to balance economic growth with sustainability.

Renewable energy consumption is a crucial solution to addressing pressing environmental issues, particularly climate change and air pollution. Investigating the factors that drive its adoption is highly significant, as it provides policymakers and stakeholders with valuable insights to accelerate the transition to renewable energy sources. Through this approach, we can minimise the negative consequences of our reliance on fossil fuels, thereby protecting the integrity of the environment. Therefore, the primary goal of this study is to thoroughly investigate the main factors that influence renewable energy consumption and environmental change in six specifically chosen ASEAN countries. The stationarity of the 1990-2019 data was tested using panel data techniques such as Levin, Lin, and Chu (LLC), Im Pesaran (IPS), and the Shin W-stat test. According to the stationarity tests, after the first order, all variables exhibit stationarity. Additionally, Pedroni's co-integration test result confirmed that there was a long-term relationship among the variables. Different methods, such as dynamic ordinary least squares (DOLS), fully modified ordinary least squares (FMOLS), and pooled ordinary least squares (POLS), are used for cointegration estimating. The results suggest that there is a positive co-integration between renewable energy use and GDP in six ASEAN countries, indicating a long-term relationship. The positive relationship between GDP and renewable energy use suggests that economic growth is the primary driving force behind ASEAN's renewable energy adoption. However, factors like carbon emissions, population density, and foreign direct investment (FDI) negatively impact the demand for renewable energy. The limited availability of renewable energy in certain ASEAN countries may discourage foreign direct investment (FDI) due to the inverse relationship between FDI and renewable energy use. The studies also revealed that carbon emissions, which contribute to environmental pollution, do not motivate industries to invest in renewable energy. This finding would challenge the Environmental Kuznets Curve (EKC) hypothesis. According to the EKC, there is a significant transition towards renewable energy as a response to environmental degradation. However, it is worth noting that several ASEAN countries have experienced economic growth while also experiencing higher levels of carbon emissions. Given that economic expansion might not be environmentally beneficial, this research has implications for ASEAN energy policies. The ASEAN region faces a challenge in investing in renewable energy due to the excessive dependence on fossil fuels. Therefore, an in-depth evaluation of the main factor behind ASEAN's environmental concerns, which promotes the adoption of renewable energy, can greatly influence policy decisions, particularly in attaining net zero emissions. Policymakers can utilise this comprehensive analysis to establish informed objectives for policies related to renewable energy and develop strategic plans, i.e. reforming fuel subsidies. The goal is to encourage the development of environmentally friendly and sustainable energy plans for the future in the ASEAN region.

This study examined the impact of renewable energy adoption on the attractiveness of Asian emerging economies to Foreign Direct Investment (FDI) amidst 2020s global economic upheavals. Utilising an Autoregressive Distributed Lag (ARDL) cointegration bounds testing approach to analyse data from 1971 to 2020, the findings revealed a significant positive correlation between renewable energy use and long-term FDI inflows, particularly in Indonesia and Malaysia. Furthermore, the analysis has shed light on the positive impact of rising real per capita income on FDI attractiveness in Malaysia and the Philippines, suggesting a multifaceted economic landscape influencing investment trends. This research has distinguished itself by demonstrating how renewable energy initiatives, alongside economic indicators, have significantly attracted FDI in Asian emerging markets. It has highlighted the ASEAN 4 countries, especially Indonesia and Malaysia, with their rich renewable energy resources and supportive policies, increasingly favoured by global investors. This study’s contribution has been novel in its focussed analysis of the interplay between renewable energy adoption and FDI attractiveness, offering insightful implications for policymakers and investors. JEL Codes: F21, O11, Q43.

Purpose This study aims to explore the short- and long-run asymmetric link between carbon emission (CE), renewable energy generation (REG), renewable energy capacity (REC), renewable energy investment (REI) and energy demand (ED) to analyze the impact of positive and negative asymmetric shocks of carbon emissions. Design/methodology/approach The nonlinear autoregressive distributed lag (NARDL) model was used to capture the asymmetric effects of the independent variables REG, REC, REI and ED on the dependent variable CE from 1990 to 2024. Findings The findings suggest that all independent variables are associated with the CE in the long run. This relationship confirms that changes in REG, REC, REI and ED significantly impact the CE. The results indicate that positive shocks in renewable energy generation have a stronger impact on emission reduction than negative shocks have on increasing emissions. The short-run asymmetric value of REG is 1.371, which is positive and significant at a 1% level, indicating that changes in REG do not have a stagnant effect on CE. Research limitations/implications Firstly, the analysis focuses on aggregate renewable energy generation and does not differentiate between different types of renewables (e.g. solar, wind, hydro). Future studies could explore the individual effects of different renewable energy sources on emissions and additional variables such as energy prices and government subsidies for the clean energy investment. Practical implications The study has several policy and practical implications. First, policymakers should prioritize expanding renewable energy infrastructure, as the impact of increasing renewable energy generation is more pronounced in reducing emissions than the adverse effects of its reduction. Governments should design policies that encourage sustained investment in renewable energy to ensure long-term emission reductions. Originality/value The annual data on CE, REC, REG, REI and ED from the International Energy Agency and International Renewable Energy Agency for the period of 1990–2024 were used to incorporate carbon emissions during the Paris Agreement and the COVID-19 pandemic.

In recent times, numerous nations have been investing in renewable energy components with the aim of mitigating greenhouse gas emissions and enhancing access to secure energy sources. Consequently, there has been a global surge in renewable energy adoption. Afghanistan's renewable energy portfolio encompasses solar, wind, hydropower, geothermal, and biomass, positioning it among the countries with the lowest levels of worldwide energy consumption. According to estimates from the Ministry of Energy and Water in Afghanistan, the nation holds a potential renewable energy resource capacity of approximately 300,000 MW. As a result, the study was initiated to explore the relationship of renewable energy and sustainable economic development in Afghanistan. Data collection involved the review of a rigorously vetted questionnaire, which underwent expert assessment for content validity. The analysis of data was executed by synthesizing inputs from specialists. A survey of 35 experts, drawn from governmental bodies, non-governmental organizations (NGOs), and academic faculties specializing in economics, participated in the study through the Delphi method. The findings reveal that the installed capacity of renewable energy sources, rated at an average value of 94.04%, exerts the most significant influence on Afghanistan's sustainable economic progress. Following closely behind is the allocation of resources towards investment in renewable energy, with an average rating of 83.6%. Subsequently, job creation within the renewable energy sector, with a mean rating of 77.36%, and access to renewable energy sources, averaging at 69.12%, also play notable roles. By harnessing the capabilities of renewable energy technologies, Afghanistan stands poised to propel itself towards achieving its enduring objectives for sustainable development.

This study seeks to look into the effects of financial development, economic growth, consumer price index (CPI), and foreign direct investment (FDI) on renewable energy utilization. The investigation applied the panel dynamic ordinary least squares (DOLS) methodology by using yearly time-series data from 1990 to 2022 for the BRICS nations (Brazil, Russia, India, China, and South Africa). The empirical results show an upward trend involving financial development and the use of renewable energy, suggesting that financial development precedes the uptake of renewable energy. In a similar vein, there are noteworthy positive associations found between the CPI and economic growth when renewable energy is used. Furthermore, a surprising link between direct investment and the use of renewable energy is also revealed by our research. These findings offer insightful information about the factors influencing the use of renewable energy in the BRICS nations. From a policy standpoint, the results support the implementation of policies that encourage the uptake of clean technology in conjunction with strong efforts to promote the adoption and exploitation of renewable energy sources. Such actions can promote economic expansion and help the BRICS economies meet their sustainability and low-carbon commitments. The adoption of renewable energy in the examined bloc can be made even more cost-effective by taking practical measures, such as feed-in tariffs and subsidies. By providing evidence-based insights, this study advances the worldwide fight against climate change and the quest for affordable and sustainable energy.

Subject Outlook for the renewables sector. Significance The United Arab Emirates (UAE) announced plans to increase its clean energy targets at the World Future Energy Summit hosted in Abu Dhabi on January 18-21. Over the past decade, the country has cultivated a reputation as a 'green' trailblazer in the renewable energy (RE) sector. In 2009, Abu Dhabi launched its drive to transform the UAE into a global leader in the sector, creating an economic blueprint requiring that renewables comprise 7% of energy production by 2020. Impacts The UAE will develop a national carbon market to spur RE investment. Development of world-class RE technology could facilitate advanced technology transfer into other fields. Hydrocarbons exports and petrochemical production will increase, boosting foreign revenues. Significant subsidy cuts and the subsequent reduction in the fiscal burden should enable further RE investment in coming years.

The rising global demand for sustainable energy, driven by volatile fossil fuel prices and resource depletion, underscores the urgent need to understand the drivers of renewable energy adoption. This study empirically examines the macroeconomic determinants influencing renewable energy consumption in Somalia. Using national data from 1990 to 2022, the analysis employs the Autoregressive Distributed Lag (ARDL) and Dynamic Least Squares (DLS) approaches to estimate both short-run and long-run elasticities of key economic variables. The findings reveal that GDP has a positive but statistically insignificant effect on renewable energy use, with a 1% increase in GDP leading to a 0.021% rise in consumption over the long term. In contrast, foreign direct investment (FDI) and domestic investment exhibit negative effects, reducing renewable energy use by 0.002% and 0.046%, respectively. Trade openness is also negatively associated with renewable energy consumption (coefficient: -0.009), suggesting that greater trade liberalization may hinder renewable energy adoption. Conversely, population growth positively influences renewable energy use, while carbon emissions show a negative relationship, emphasizing the importance of tailored energy strategies aligned with national economic conditions. Based on these findings, the study recommends that the Somali government establish a comprehensive renewable energy policy framework, revise trade policies to support clean energy goals, incentivize green FDI, and strengthen regulatory institutions to foster sustainable energy investment.

UK introduces feed-in tariffs

The role of cooperatives in overcoming the barriers to adoption of renewable energy

This study examines the influence that investments in renewable energy have on the long-term economic development of emerging nations via a comparative data analysis. In this work, a mix of quantitative econometric analysis and qualitative case studies is used to investigate the intricate processes that determine the link between the adoption of renewable energy and the outcomes of economic growth. The quantitative research reveals that positive associations are statistically significant between investments in renewable energy and several critical economic indicators. These indicators include GDP growth rates, employment levels, and average income levels per capita. Qualitative case studies, on the other hand, provide insights into the contextual elements that influence the performance of investments in renewable energy in specific developing country contexts. The findings of this study highlight the significant impact that strategic investments in renewable energy infrastructure have as a driver of sustainable economic growth. To get the greatest possible socioeconomic benefit from the implementation of renewable energy systems in various developing nation contexts, the research highlights the need to implement specific policy interventions and investment methods.

Imposing versus Enacting Commitments for the Long‐Term Energy Transition: Perspectives from the Firm

Adoption of renewable energy is one of the most important steps taken to cope with global warming and achieve sustainability. While its supply has seen a global boom, the adoption of renewable energy from the critical demand side faces clear challenges. This paper investigates firms’ use of renewable energy, paying special attention to factors in internal corporate governance and external governance. Based on 1,027 listed companies in 47 countries or regions, we show statistically significant evidence that both internal and external governance matter for firms’ adoption of renewable energy. We also find significant interactions between internal and external factors. Specifically, board duality and higher executive share reduce renewable energy adoption, strong external governance increases renewable energy adoption, and firms in common law systems tend to use fewer renewables. Our results are robust to different specifications, which allows us to tell an international demand-side story to complement the narrative on supply.