scispace - formally typeset
Open AccessDOI

Foreign Direct Investment, Stock Market Development, and Renewable Energy Consumption: Case Study of Iran

TLDR
In this paper, the authors assess the impact of effective factors on the development of renewable energy consumption in Iran with emphasis on the role of foreign direct investment (FDI) and financial sector development (especially stock market development).
Abstract
Concerning environmental pollution issues derived from fossil energy consumption, the application of renewable energies plays an important role in countries, especially in their energy sector policymaking. Since determining the relationship between different variables and renewable energy not only has significant policy applications in energy sector but also is necessary in achieving sustainable development goals, this study assesses the impact of effective factors on the development of renewable energy consumption in Iran with emphasis on the role of foreign direct investment (FDI) and financial sector development (especially stock market development). This study applies Auto-Regressive Distributed Lag (ARDL) bounding test method over the period of 1978-2016. The research findings show that there is a causal relationship between foreign direct investment and the stock market and renewable energy consumption in Iran such that the increase of foreign direct investment and stock market development will increase the consumption of renewable energies in Iran. On the other hand, a growth in renewable energies consumption will significantly reduce CO2 emission in the long run. Besides, increasing FDI and stock market development will raise the economic growth of a country and, in return, increase CO2 emission.

read more

Citations
More filters
Journal ArticleDOI

Nexus between Economic Policy Uncertainty and Renewable Energy Consumption in BRIC Nations: The Mediating Role of Foreign Direct Investment and Financial Development

TL;DR: In this paper, the authors investigated the relationship between economic policy uncertainty (EPU) and renewable energy consumption (REC) in BRIC nations for the period 1997q1-2018q4.
Journal ArticleDOI

Nexus between economic policy uncertainty, foreign direct investment, government debt and renewable energy consumption in 13 top oil importing nations: Evidence from the symmetric and asymmetric investigation

TL;DR: The role of economic policy uncertainty (EPU), foreign direct investment (FDI) and government debt (DEBT) on renewable energy integration in the economy by taking a panel of top 13 oil-importing nations for the period 1995-2018 was investigated in this article .
Journal ArticleDOI

The impacts of economic growth, foreign direct investments, and gas consumption on the environmental Kuznets curve hypothesis CO2 emission in Iran

TL;DR: In this paper , the authors investigated the long-run and short-run relationship between carbon dioxide (CO2) emissions, energy consumption, especially gas as a clean fuel, foreign direct investments (FDI), and gross domestic product (GDP) using autoregressive distributed lag (ARDL) model.
Journal ArticleDOI

An asymmetric nexus between clean energy, good governance, education and inward FDI in China: Do environment and technology matter? Evidence for chines provincial data

Md. Qamruzzaman
- 20 Apr 2023 - 
TL;DR: Wang et al. as discussed by the authors evaluated the effects of energy, good governance, education, and environmental regulation on inflows of FDI in china for the period 1997-2018, using a panel data econometrical technique, including panel unit root, cointegration, CS-ARDL, and asymmetric ARDL.
Journal ArticleDOI

Environmental sustainability and biomass energy consumption through the lens of pollution Haven hypothesis and renewable energy-environmental kuznets curve

TL;DR: In this paper , the authors examined the relationship between foreign direct investment, economic growth, natural resources, urbanization, biomass energy usage, and ecological footprint in 87 middle-income countries using data spanning 1990 to 2017.
References
More filters
Journal ArticleDOI

Bounds testing approaches to the analysis of level relationships

TL;DR: In this paper, the authors developed a new approach to the problem of testing the existence of a level relationship between a dependent variable and a set of regressors, when it is not known with certainty whether the underlying regressors are trend- or first-difference stationary.
BookDOI

Financial development and economic growth : views and agenda

TL;DR: The authors argued that the preponderance of theoretical reasoning and empirical evidence suggests a positive first-order relationship between financial development and economic growth, and that financial development level is a good predictor of future rates of economic growth.
Posted Content

Stock markets, banks, and economic growth

TL;DR: In this paper, the authors investigate whether measures of stock market liquidity, size, volatility, and integration in world capital markets predict future rates of economic growth, capital accumulation, productivity improvements, and private savings.
Journal ArticleDOI

Financing Innovation and Growth: Cash Flow, External Equity, and the 1990s R&D Boom

TL;DR: In this article, the authors estimate dynamic R&D models for high-tech firms and find significant effects of cash flow and external equity for young, but not mature, firms.
Journal ArticleDOI

On the efficiency of competitive stock markets where trades have diverse information

TL;DR: In this article, the authors consider a market with two types of traders, "informed" and "uninformed" traders, and study the operation of the price system as an aggregator of different pieces of information, and show that when there are n-types of traders (n > 1), the price reveals information to each trader which is of higher quality than his own information.
Related Papers (5)