Strategic MARCOS Model for Optimizing Renewable Energy Investments Under Pythagorean Hesitant Fuzzy Assessments

ABSTRACTThe impact of renewable energy technologies and investments in reducing carbon levels is important. This issue has been little addressed so far due to a lack of data. The most important feature of this study is that it examines the impact of renewable energy investments and renewable energy technologies on reducing oil‐derived carbon emissions for the first time across 27 European Union countries for the years 2006–2021. Another new aspect of the study is that it divides European countries into two, based on income level, and considers the impact of governance indicators such as regulatory quality, political stability, and democracy on European countries' carbon neutrality targets. For this purpose, the robust Driscoll and Kraay robust estimator panel data method was applied in the study, based on the Hausman test, autocorrelation test, inter‐unit correlation test, and heteroscedasticity tests. The findings show that renewable energy investments and technologies help reduce carbon emissions in different models. In addition, although economic growth is beneficial for the environment, it has been determined that it has an increasing effect on carbon emissions in European countries with higher income levels. Trade openness reduces carbon emissions in high‐income countries and increases them in low‐income countries. Population density contributes to reducing carbon emissions. Overall, the results suggest that European countries need to increase renewable energy investments and support clean technologies to achieve carbon neutrality targets. The study also shows that reducing oil consumption by promoting renewable energy technologies and investments is key for European policymakers to reduce carbon emissions.

The aim of this paper is to explore the relationship between oil rents and renewable energy consumption and to provide evidence on the significance of the effects of oil prices and investment taxes on renewable energy investment. Two different panel data samples were used: six variables for 44 countries were utilized to prove that oil rents’ are an independent variable causing renewable energy consumption, and five variables for 10 countries were utilized to prove that higher oil prices and higher investment taxes lead to higher levels of renewable energy investment. For both samples, the Granger causality test, unit root test, correlation matrix, fixed and random multiple regressions, Hausman test, and panel cointegration test were performed. The paper adds to the narrow literature on the determinants of renewable energy consumption, mainly oil rents. It also provides further evidence on how higher investment taxes can lead to higher renewable energy investment. The findings confirm that “oil rents” directly affect the variations in renewable energy consumption and that investment taxes directly affect renewable energy investment as they lead to a higher selling price of oil-dependent products. However, no correlation was found between renewable energy investment and oil prices. Taxes are an effective instrument for changing people's and businesses' behaviour. Given the numerous advantages of renewable energy consumption and investment, governments must make plans and create regulations and laws to compel a gradual transition from non-renewable to renewable energy using consumption and investment taxes and other behavioral incentives.

The article examines the current state and trends of investing in the development of renewable energy sources and waste-free biogas technologies in agriculture. Investing in biogas plants for large agricultural enterprises solves several problems at once. One of the most important is the processing of waste, which is especially important for livestock complexes. The volumes of global investments in renewable energy sources and biofuels in 2011–2021 are analyzed and determined that 2021 was a record year in terms of total investment in the energy transition, and in terms of investment in renewable energy and biofuels. China and Europe remain the leaders in investing in renewable energy and biofuels in 2021. In recent years, there has been an upward trend in domestic investment in renewable energy and biofuels, but their volumes are still at a low level. Investing in any market, regardless of the presence of international representatives on it and the probable inclination of the business to risk, is a rather difficult decision. The initial stage in deciding to enter the Ukrainian market, the investor must choose and develop a clear and unambiguous investment strategy through a thorough risk assessment. Three possible scenarios for an investor to enter the renewable energy and biofuels market have been identified: creation of a new company from scratch (greenfield), acquisition of an existing company; acquisition of existing production. Also, on the basis of the most cost-effective scenario – the creation of a new company from scratch (greenfield) – an assessment of the economic efficiency of investing in waste-free biogas technologies in agriculture was carried out. Based on the results of the study, five areas have been identified to stimulate investment in renewable energy sources in general and biogas waste-free technologies in particular. Increased investment in the renewable energy sector will allow Ukraine to produce additional volumes of electricity that can be exported to Europe in exchange for Russian energy resources. Despite global trends, many investors have suspended support for renewable energy projects due to the state’s failure to fulfill its obligations and the retrospective reduction of “green” tariffs without launching an alternative in the form of “green” auctions.

The crucial role that financial markets have played in accelerating the shift to clean energy and renewable sources of energy is examined in this article. Thus, we built global essential mineral trade networks from 1999 to 2020 using a complex network technique to analyze their topological properties quantitatively. The impact of crucial mineral trade patterns on the growth of renewable energy is then examined using the dynamic econometric model, along with the mediating function of technological advancement in renewable energy. It analyzes investment patterns and possibilities in various industries while underlining the critical role that financial systems play in determining the speed and scope of the change. The research uses data from reliable sources and thoroughly analyzes the body of current literature. The data shows that investments in clean technologies and renewable energy have significantly increased recently. This increase may be ascribed to several causes, including favorable governmental regulations, falling renewable energy technology prices, and rising environmental consciousness among the general people. Venture capital, private equity, public markets, and specialist funds are just a few examples of financial markets that have been instrumental in directing funding to these industries. The report also reveals a change in how money is invested in the energy industry, with conventional investments in fossil fuels declining and investments in renewable energy growing significantly. The profitability and appeal of renewable energy projects, which are now competitive with traditional energy sources, are driving this transformation. The report also identifies new investment possibilities in clean technology, including smart infrastructure, grid modernization, and energy storage. Due to their potential to improve the effectiveness, dependability, and sustainability of energy systems, these areas are expanding. The results highlight the need to establish long-term stability and incentives for investment in the clean technology and renewable energy industries. Government assistance has considerably aided investor confidence, including carbon pricing systems, tax incentives, and subsidies for renewable energy sources. This analysis emphasizes how critical financial markets are to accelerating the energy transition. Financial markets may hasten the transition to a sustainable energy system by directing investments into clean technologies and renewable energy industries. To take advantage of the investment possibilities given by the energy transition, policymakers, investors, and industry stakeholders must work together.

Which policy instruments attract foreign direct investments in renewable energy?

De-risking Renewable Energy Investments in Developing Countries: A Multilateral Guarantee Mechanism

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

What drives investment in renewable energy resources? Evaluating the role of natural resources volatility and economic performance for China

Towards carbon-neutral world: The effect of renewable energy investments and technologies in G7 countries

The article discusses possible ways to increase the level of private investments in renewable energy as a prerequisite for achieving a decarbonized global economy, low-carbon transformation, and climate-resilient growth. As the United Nations has called for, governments should create a level playing field for private investment in renewable energy, as well as use fiscal policy to encourage private sector involvement. While research on renewable energy is abundant and covers topics ranging from unlocking renewable energy investment to the impact of environmental policies on innovation, energy efficiency policies, renewable energy investment policies, and feed-in tariffs, there is little research that examines the determinants of private investment in the renewable energy sector. In contrast to previous literature that focuses on overall green investments, this study distinguishes between private sector and public investments in renewable energy. Using multilevel data from 13 countries for the period 2015-2023, this chapter examines the impact of four fiscal and financial policy instruments, namely: feed-in tariffs, taxes, credits, and grants and subsidies, on private investment in renewable energy. The multilevel model with random interventions and random coefficients provides evidence of the effectiveness of two policy instruments - feed-in tariffs and credits. This study can be useful for policymakers and researchers as it deepens their understanding of the factors that contribute to increased investment in renewable energy. The findings highlight the significance of tailored fiscal policies in catalyzing private sector investment. Feed-in tariffs, which guarantee long-term contracts to renewable energy producers and provide price certainty, have been shown to reduce investment risk, thereby attracting private investors. Credits, which often include tax incentives or low-interest loans, lower the cost of capital for renewable energy projects, making them more financially viable for private entities. The study's methodology involves a robust analysis of multilevel data, allowing for a nuanced understanding of how different policy instruments perform across various national contexts. This approach acknowledges that the effectiveness of fiscal and financial policies may vary depending on country-specific factors such as market maturity, regulatory environment, and economic conditions.

Using real option analysis for highly uncertain technology investments: The case of wind energy technology

Assessment of selected energy efficiency and renewable energy investments in the Mediterranean Partner Countries

Our paper aims to identify the most important factors determining companies’ decision to invest in the energy transition in Algeria. Energy transition has been many governments’ main topic of interest over the last decades, climate change has led many of them to establish long-term plans for a successful energy transition; these plans aim to reduce greenhouse gas emissions following the guidelines of the COP21. Through a quantitative approach, we have addressed a questionnaire to different companies operating in Algeria and have obtained a total of 117 responses. The results show that financial, technical and regulatory factors have minimal impact on companies’ decision to invest in renewable energy and energy efficiency in Algeria. Further studies should explore other investment factors to help accurately determine those that significantly impact companies’ decisions to invest in Algeria’s renewable energy and energy efficiency. Furthermore, targetting one sector at a time and exploring the alternatives of foreign direct investment in renewable energy can result in higher efficiency.

Carbon emissions, ecological pollution and a steadily rising global temperature have been widely acknowledged as the most severe risks to human survival in the last few decades. Alarming increases in global temperature and sudden climatic shifts are nature's way of warning us to curb the use of fossil fuels and adopt more sustainable practices. Therefore, the present study investigates the impact of financial stability, environmental regulations and uncertain economic policies on carbon emissions and investment in renewable energy. The study used a nonparametric DEA‐DDF technique to fulfil this objective using a balanced panel dataset comprising 28 Chinese provinces from 2011 to 2021. Overall results demonstrated that financial stability reduces carbon emissions and accelerates investment in renewable energy projects. The findings imply that a financially stable economy like China encourages businesses to invest in cutting‐edge, environmentally friendly technology to boost productivity while reducing carbon emissions. Likewise, results show that stringent ecological regulations decrease carbon emissions and promote investment in renewable energy. Hence, stakeholders are keen to comply with environmental regulations in China to reduce carbon emissions by investing in renewable energy resources to avoid penalties. Finally, results suggest that uncertain economic policies increase carbon emissions and restrict access to credit from financial institutions for investment in renewable energy purposes in China. Findings imply that uncertainty in economic policies could lead to less environmentally friendly production practices that may increase carbon emissions and reduce the demand for renewable energy products.

The main purpose of the study was to identify the level and factors influencing investments in renewable energy sources (RES) in basic local government units in rural areas. The specific objectives were to define the conditions for the development of renewable energy sources in Poland, to determine the directions of changes as well as the importance of renewable energy in Poland, to present the relationship between the level of expenditure on renewable energy and budget components in rural and rural-urban communes. The Świętokrzyskie voivodeship (Voivodship—a unit of the highest administration level in Poland, since 1990 a unit of the primary territorial division of government administration, since 1999 also a unit of local government, there were 16 voivodships in Poland), which is one of the centrally located voivodeships in Poland, was purposefully selected for the research. The research period covered the years 2016–2019. The sources of materials were the literature on the subject, as well as empirical materials obtained at the Voivodeship Statistical Office. The following methods were used for the analysis and presentation of materials: descriptive, tabular, graphical, Gini concentration coefficient, Lorenz concentration curve, Kendall’s tau correlation coefficient and Spearman’s rank correlation coefficient. Poland is one of the countries with quite high dependence on hard and brown coal. Changes in the structure of energy sources are slow. Investments in renewable energy are necessary. The problem in this respect is the lack of a proper law. Despite this, investments in renewable energy are being made in rural areas. In the Świętokrzyskie voivodeship, only 28% of communes made such investments. It was found that only in urban rural communes the amount of investment expenditures in renewable energy sources was related to the level of budget expenditures and property expenditures of the commune. The amount of support from the European Union aid funds was positively correlated with the level of expenditure on investments in renewable energy. Therefore, it can be concluded that without the support from EU funds, it is not possible to invest in renewable energy in local government units.