IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/v15y2025i2id18878.html

The Effect of Energy Policy Risk on Renewable Energy

Author

Listed:
  • Sharipov, Kongratbay

    (Minister of Higher Education, Science and Innovation of Uzbekistan, Uzbekistan)

  • Abdullayev, Ilyos

    (Dean of Faculty of Socio-economic Sciences, Urgench State University, Urgench, 220100, Uzbekistan)

  • Kuziboev, Bekhzod

    (Department of Economics, Urgench State University, Home 14, Kh. Alimjan Str., 220100 Urgench, Uzbekistan)

  • Makhmudov, Samariddin

    (Department of Economics, Mamun University, Khiva, Uzbekistan; & Alfraganus University, Tashkent, Uzbekistan; & Termez University of Economics and Service, Termez, Uzbekistan)

  • Kalandarov, Feruz

    (Faculty of Socio-Economic Sciences, Urgench State University, Home 14, Kh. Alimjan Str, Urgench, 220100, Uzbekistan)

  • Khaytboeva, Nigora

    (Faculty of Socio-Economic Sciences, Urgench State University, Home 14, Kh. Alimjan Str, Urgench, 220100, Uzbekistan)

  • Ilkhamova, Zarnigor

    (Department of Business and Management, Urgench State University, Home 14, Kh. Alimjan Str., 220100 Urgench, Uzbekistan)

Abstract

This study explores the association among renewable energy, energy policy risk, economic development, ESG (Environmental, Social, Governance) performance and institutional quality in the panel of 137 nations from 2000 to 2022. For the econometric estimations, Method of Moments Quantile Regression (MMQR) approach is employed which is robust for the heteroscedasticity. The findings reveal that energy policy risk curbs renewable energy development which is in line with the theoretical linkage. Moreover, the robustness checks conducted by dividing the sample into developed and developing economies also validate that energy policy risk leads to a decline in renewable energy transition. Regarding control variables, economic development, ESG performance and institutional quality, their effects vary depending on the sample of countries.

Suggested Citation

  • Sharipov, Kongratbay & Abdullayev, Ilyos & Kuziboev, Bekhzod & Makhmudov, Samariddin & Kalandarov, Feruz & Khaytboeva, Nigora & Ilkhamova, Zarnigor, 2025. "The Effect of Energy Policy Risk on Renewable Energy," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 15(2), pages 566-575, February.
    • Handle: RePEc:eco:journ2:v:15:y:2025:i:2:id:18878
    DOI: 10.32479/ijeep.18878
    as

    Download full text from publisher

    File URL: https://econjournals.com/index.php/ijeep/article/download/18878/8689
    Download Restriction: no
    File URL: https://libkey.io/10.32479/ijeep.18878?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Pata, Ugur Korkut & Alola, Andrew Adewale & Erdogan, Sinan & Kartal, Mustafa Tevfik, 2023. "The influence of income, economic policy uncertainty, geopolitical risk, and urbanization on renewable energy investments in G7 countries," Energy Economics, Elsevier, vol. 128(C).
    2. Mohamed, Hassen & Ben Jebli, Mehdi & Ben Youssef, Slim, 2019. "Renewable and fossil energy, terrorism, economic growth, and trade: Evidence from France," Renewable Energy, Elsevier, vol. 139(C), pages 459-467.
    3. Wang, Jun-Zhuo & Feng, Gen-Fu & Chang, Chun-Ping, 2024. "How does political instability affect renewable energy innovation?," Renewable Energy, Elsevier, vol. 230(C).
    4. Sadorsky, Perry, 2009. "Renewable energy consumption and income in emerging economies," Energy Policy, Elsevier, vol. 37(10), pages 4021-4028, October.
    5. Machado, José A.F. & Santos Silva, J.M.C., 2019. "Quantiles via moments," Journal of Econometrics, Elsevier, vol. 213(1), pages 145-173.
    6. T. S. Breusch & A. R. Pagan, 1980. "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 239-253.
    7. Amuakwa-Mensah, Franklin & Näsström, Elin, 2022. "Role of banking sector performance in renewable energy consumption," Applied Energy, Elsevier, vol. 306(PB).
    8. Apergis, Nicholas & Payne, James E., 2010. "Renewable energy consumption and economic growth: Evidence from a panel of OECD countries," Energy Policy, Elsevier, vol. 38(1), pages 656-660, January.
    9. Aguirre, Mariana & Ibikunle, Gbenga, 2014. "Determinants of renewable energy growth: A global sample analysis," Energy Policy, Elsevier, vol. 69(C), pages 374-384.
    10. Dunbar, Kwamie & Treku, Daniel N., 2025. "Do energy transition investment flows aid climate commitments?," Energy Economics, Elsevier, vol. 142(C).
    11. Wang, Erhong & Gozgor, Giray & Mahalik, Mantu Kumar & Patel, Gupteswar & Hu, Guoheng, 2022. "Effects of institutional quality and political risk on the renewable energy consumption in the OECD countries," Resources Policy, Elsevier, vol. 79(C).
    12. Joakim Westerlund, 2005. "New Simple Tests for Panel Cointegration," Econometric Reviews, Taylor & Francis Journals, vol. 24(3), pages 297-316.
    13. Ariza, Juan & Ferrer, Román, 2025. "Explosiveness in the renewable energy equity sector: International evidence," The North American Journal of Economics and Finance, Elsevier, vol. 76(C).
    14. Lee, Chien-Chiang & Yuan, Zihao & Lee, Chi-Chuan & Chang, Yu-Fang, 2022. "The impact of renewable energy technology innovation on energy poverty: Does climate risk matter?," Energy Economics, Elsevier, vol. 116(C).
    15. Shao, Hanhua & Wang, Yaning & Lee, Chien-Chiang & Wen, Huwei, 2024. "How does political stability affect renewable energy finance? International evidence," Energy, Elsevier, vol. 313(C).
    16. Jiang, Weiling & Jiang, Keyao & Zhang, Zhihao & Martek, Igor & Ruan, Congping & Lu, Gan, 2025. "The impact mechanism of political risk on foreign renewable energy investment in developing countries: The mediating role of vulnerability," Energy Policy, Elsevier, vol. 198(C).
    17. Boubaker, Sabri & Karim, Sitara & Naeem, Muhammad Abubakr & Sharma, Gagan Deep, 2023. "Financial markets, energy shocks, and extreme volatility spillovers," Energy Economics, Elsevier, vol. 126(C).
    18. Yasmeen, Rizwana & Shah, Wasi Ul Hassan, 2024. "Energy uncertainty, geopolitical conflict, and militarization matters for Renewable and non-renewable energy development: Perspectives from G7 economies," Energy, Elsevier, vol. 306(C).
    19. Salman, Muhammad & Wang, Guimei, 2024. "Rural energy poverty alleviation in OECD nations: An integrated analysis of renewable energy, green taxation, and the United Nations agenda 2030," Renewable Energy, Elsevier, vol. 237(PD).
    20. Greiner, Clemens & Klagge, Britta, 2024. "The temporalities and externalities of ancillary infrastructure in large-scale renewable energy projects: Insights from the rural periphery," Energy Policy, Elsevier, vol. 193(C).
    21. Cadoret, Isabelle & Padovano, Fabio, 2016. "The political drivers of renewable energies policies," Energy Economics, Elsevier, vol. 56(C), pages 261-269.
    22. Zhang, Wenwen & Chiu, Yi-Bin, 2023. "Country risks, government subsidies, and Chinese renewable energy firm performance: New evidence from a quantile regression," Energy Economics, Elsevier, vol. 119(C).
    23. Lichao Wu & David C. Broadstock, 2015. "Does economic, financial and institutional development matter for renewable energy consumption? Evidence from emerging economies," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 8(1), pages 20-39.
    24. Rahman, Mohammad Mafizur & Sultana, Nahid, 2022. "Impacts of institutional quality, economic growth, and exports on renewable energy: Emerging countries perspective," Renewable Energy, Elsevier, vol. 189(C), pages 938-951.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kalandarov, Feruz & Makhmudov, Samariddin & Ibadullaev, Dilshad & Matniyozov, Murodjon & Nasretdinova, Farangis & Sabirov, Khamid & Bahodirov, Nu'monkhon, 2025. "Low-Carbon Energy Risk and Renewable Energy Development: Insigths from Method of Moments Quantile Regression," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 15(3), pages 524-536, April.
    2. Clement Olalekan Olaniyi & Mamdouh Abdulaziz Saleh Al‐Faryan & Eyitayo Oyewunmi Ogbaro, 2025. "Do institutional quality and its threshold matter in the sensitivity of the renewable energy transition to financial development? New empirical perspectives," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(1), pages 5-43, January.
    3. Umut Uzar, 2024. "Free Speech, Green Power: The Impact of Freedom of Expression on Renewable Energy," Sustainability, MDPI, vol. 16(19), pages 1-21, October.
    4. Sweidan, Osama D., 2021. "Is the geopolitical risk an incentive or obstacle to renewable energy deployment? Evidence from a panel analysis," Renewable Energy, Elsevier, vol. 178(C), pages 377-384.
    5. Irina Georgescu & Ayşe Meriç Yazıcı & Vildan Bayram & Mesut Öztırak & Ayşegül Toy & Mesut Dogan, 2025. "Governing the Green Transition: The Role of Artificial Intelligence, Green Finance, and Institutional Governance in Achieving the SDGs Through Renewable Energy," Sustainability, MDPI, vol. 17(12), pages 1-21, June.
    6. Uddin, Gazi Salah & Hasan, Md. Bokhtiar & Park, Donghyun & Ali, Md. Sumon & Wadström, Christoffer, 2025. "Exploring the economic and non-economic determinants of investments in renewable energy," Renewable Energy, Elsevier, vol. 255(C).
    7. Shuddhasattwa Rafiq & Sudharshan Reddy Paramati & Md. Samsul Alam & Khalid Hafeez & Muhammad Shafiullah, 2025. "Does institutional quality matter for renewable energy promotion in OECD economies?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(1), pages 477-492, January.
    8. Makun, Keshmeer, 2026. "Impact of technological innovation and formal institutions in renewable energy transition," Energy Policy, Elsevier, vol. 214(C).
    9. Zheng, Mingbo & Zhang, Xinyu, 2025. "Digitalization and renewable energy development: Analysis based on cross-country panel data," Energy, Elsevier, vol. 319(C).
    10. Shahnazi, Rouhollah & Dehghan Shabani, Zahra, 2020. "Do renewable energy production spillovers matter in the EU?," Renewable Energy, Elsevier, vol. 150(C), pages 786-796.
    11. Rafiq, Muhammad Umair & Saleem, Shaham & Bashir, Hafsa & Shafqat, Faiqa, 2025. "Navigating the energy crisis: Unveiling the determinants of renewable energy investment," Energy, Elsevier, vol. 332(C).
    12. Hanhua Shao & Yaning Wang, 2025. "Political Stability, Economic Risk, and Renewable Energy Technology Innovation: International Evidence," American Journal of Economics and Sociology, Wiley Blackwell, vol. 84(3), pages 449-465, May.
    13. Shao, Hanhua & Wang, Yaning & Lee, Chien-Chiang & Wen, Huwei, 2024. "How does political stability affect renewable energy finance? International evidence," Energy, Elsevier, vol. 313(C).
    14. Biqing Li & Qiuting Liu & Yuming Li & Shiyong Zheng, 2023. "Socioeconomic Productive Capacity and Renewable Energy Development: Empirical Insights from BRICS," Sustainability, MDPI, vol. 15(7), pages 1-14, March.
    15. Gosens, Jorrit & Hedenus, Fredrik & Sandén, Björn A., 2017. "Faster market growth of wind and PV in late adopters due to global experience build-up," Energy, Elsevier, vol. 131(C), pages 267-278.
    16. Trinh, Hai Hong & Sharma, Gagan Deep & Tiwari, Aviral Kumar & Vo, Diem Thi Hong, 2022. "Examining the heterogeneity of financial development in the energy-environment nexus in the era of climate change: Novel evidence around the world," Energy Economics, Elsevier, vol. 116(C).
    17. Uzar, Umut, 2020. "Political economy of renewable energy: Does institutional quality make a difference in renewable energy consumption?," Renewable Energy, Elsevier, vol. 155(C), pages 591-603.
    18. Amuakwa-Mensah, Franklin & Näsström, Elin, 2022. "Role of banking sector performance in renewable energy consumption," Applied Energy, Elsevier, vol. 306(PB).
    19. Auteri, Monica & Mele, Marco & Ruble, Isabella & Magazzino, Cosimo, 2024. "The double sustainability: The link between government debt and renewable energy," The Journal of Economic Asymmetries, Elsevier, vol. 29(C).
    20. Gozgor, Giray & Mahalik, Mantu Kumar & Demir, Ender & Padhan, Hemachandra, 2020. "The impact of economic globalization on renewable energy in the OECD countries," Energy Policy, Elsevier, vol. 139(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:v:15:y:2025:i:2:id:18878. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Monica Sinhat (email available below). General contact details of provider: https://econjournals.com/index.php/ijeep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.