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Institutional Architectures as Market Catalysts: How Government Quality Moderates Private Investment in Renewable Energy in VISTA‐C Countries

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  • Obumneke Bob Muoneke
  • Yan Tan
  • Guy Robinson

Abstract

This study advances the debate on sustainable energy transitions by investigating how government quality and political ideologies shape private sector investment in renewable energy across VISTA‐C countries (Vietnam, Indonesia, South Africa, Turkey, Argentina and Colombia). Challenging Ecological Modernization Theory's core premise, we reveal a paradox: while private investment generally reduces renewable adoption, parliamentary systems with high government quality (South Africa and Turkey) demonstrate positive market effects through policy stability and independent regulation. Using panel data (1990–2022) and the Panel Corrected Standard Error technique, we showed that higher levels of government quality strengthened the relationship between private sector investment and renewable energy in parliamentary systems. Notably, Turkey's centrist convergence shows how ideological pragmatism can overcome traditional left–right divides in energy policy. The findings provide policymakers with actionable insights: (1) legislative safeguards against policy reversals, (2) depoliticised regulatory frameworks and (3) cross‐party energy councils enhance investment viability. This research redefines the political economy of energy transitions by demonstrating that institutional architecture, not market forces alone, determines renewable investment success in emerging economies.

Suggested Citation

  • Obumneke Bob Muoneke & Yan Tan & Guy Robinson, 2026. "Institutional Architectures as Market Catalysts: How Government Quality Moderates Private Investment in Renewable Energy in VISTA‐C Countries," Business Strategy and the Environment, Wiley Blackwell, vol. 35(3), pages 3392-3421, March.
    • Handle: RePEc:bla:bstrat:v:35:y:2026:i:3:p:3392-3421
    DOI: 10.1002/bse.70354
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