Abstract
This study investigated the impact of corporate sector variables on energy supply and demand in OECD countries. In the first stage of the investigation, a panel nonlinear model was employed to assess the effects of financial corporation debt to equity (FCDE), non-financial corporation debt to surplus (NFCDS), and banking system leverage on the contribution of renewable energy to primary energy. In the second stage, the influences of these independent variables on geo biomass, hydro, solar, and wind energy consumption were investigated. The findings demonstrate that FCDE and NFCDS are the firm-specific factors that influence renewable energy supply in the long run. The significant relationship between financial firm leverage and renewable energy highlights the fact that leverage is one of the main obstacles to further investment in renewable energy. Moreover, while banking system leverage has no impact on renewable energy’s contribution to primary energy, it has a discernible influence on solar and geo biomass energy consumption. Solar is the only renewable energy variable that is influenced by financial corporations and banking system leverage.
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