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The effect of policy stability on clean energy investment

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  • Yunpeng Wang

    (Xi’an University of Finance and Economics)

  • Chun-Ping Chang

    (Shih Chien University)

Abstract

Our research investigates the relationship between policy stability and clean energy investment via panel data covering 44 countries spanning the time period 2000–2020. Specifically considering the heterogeneity among countries with different levels of clean energy investment, we employ a panel quantile regression model on the sample data and further test the heterogeneity with a sub-sample of developing countries. Findings show that countries with higher levels of clean energy investment (CEI) exhibit a negative relationship between policy stability and CEI, while countries with lower levels of clean energy investment (CEI) have a positive relationship. We spot other factors that affect CEI and further conduct a robustness test on the model. These results offer critical policy implications on how to promote clean energy investment.

Suggested Citation

  • Yunpeng Wang & Chun-Ping Chang, 2023. "The effect of policy stability on clean energy investment," Economic Change and Restructuring, Springer, vol. 56(1), pages 327-344, February.
    • Handle: RePEc:kap:ecopln:v:56:y:2023:i:1:d:10.1007_s10644-022-09422-3
    DOI: 10.1007/s10644-022-09422-3
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    More about this item

    Keywords

    Climate change; Policy stability; Clean energy investment; Heterogeneity;
    All these keywords.

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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