Understanding the key determinants of Fiji's renewable energy

Abstract

In this research, we reassess the interplay between renewable energy consumption and key economic indicators in Fiji, using data spanning 1991 to 2020. Applying the ARDL bounds test for cointegration, we detect a long-run correlation among renewable energy use, service sector labor productivity, urbanization, ICT exports, and unemployment. Our analysis reveals significant long-term effects: higher labor productivity and unemployment rates encourage renewable energy consumption, whereas urbanization and ICT exports tend to decrease it. At the same time, short-term observations indicate that unemployment is negatively correlated with renewable energy adoption. Our study contributes fresh perspectives on sustainable growth amidst climate change for island countries like Fiji.