Public-private partnerships investment in energy as new determinant of renewable energy: The role of political cooperation in China and India

Abstract

The most urgent global concerns revolve around environmental degradation and climate change. The potential approach to address these challenges is the implementation of a transition towards renewable energy sources. The acquisition of capital plays a crucial role in facilitating the transition towards clean energy. The government sector has demonstrated a lack of adequate funds in numerous instances. Given the substantial financial requirements associated with renewable energy, it is imperative to establish partnerships with the private sector. Hence, this study examines the influence of public-private partnership investments on renewable energy, specifically focusing on the significance of political cooperation, R&D expenditures, and technological innovation in China and India from 1990 to 2021. We used panel ARDL and the Pairwise Granger causality tests for analysis. The findings revealed that public-private partnerships, R&D investments, and political cooperation enhance renewable energy whereas, technology impedes renewable energy. The results of the causality test confirm that there exists a bidirectional relationship between investments in research and development and renewable energy. Additionally, the analysis reveals a unidirectional relationship between technology and renewable energy. The study suggested policy implications for guiding investments in public-private partnerships within the energy sector to enhance renewable energy generation and safeguard environmental integrity.