IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v251y2025ics0960148125009978.html

Transitioning ecological footprint: Private investment trends in renewable energy projects among G10 nations

Author

Listed:
  • Zhuang, Feipeng
  • Han, Huilin
  • Ahsan, Muhammad
  • Iqbal, Athar

Abstract

The urgent need for sustainable energy transition and the role of private investment in accelerating renewable energy adoption require deeper analysis, especially in the context of the G10 nations. This study examines private sector investment trends in renewable energy projects from 1990 to 2023, employing Historical Event Analysis (EHA) to assess the impact of macroeconomic stability, regulatory frameworks, and fossil fuel reliance using data from the International Finance Corporation Group's Corporate Partnership in Renewable Energy Initiatives. Findings indicate that private investment is significantly higher in countries with stable economic conditions, strong financial incentives, and well-structured legal frameworks, which facilitate renewable energy deployment, job creation, and economic growth. However, investment disparities persist, highlighting the necessity for unified strategies to attract funding and ensure long-term energy transformation. The results further reveal that periods of economic downturn or policy uncertainty discourage investment, whereas clear regulatory commitments and financial support mechanisms enhance investor confidence. Policymakers must establish a harmonized investment climate, integrating financial incentives and stable policy frameworks, to align business interests with global sustainability objectives effectively.

Suggested Citation

  • Zhuang, Feipeng & Han, Huilin & Ahsan, Muhammad & Iqbal, Athar, 2025. "Transitioning ecological footprint: Private investment trends in renewable energy projects among G10 nations," Renewable Energy, Elsevier, vol. 251(C).
    • Handle: RePEc:eee:renene:v:251:y:2025:i:c:s0960148125009978
    DOI: 10.1016/j.renene.2025.123335
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148125009978
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2025.123335?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
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Yiming, Wang & Xun, Liu & Umair, Muhammad & Aizhan, Assilova, 2024. "COVID-19 and the transformation of emerging economies: Financialization, green bonds, and stock market volatility," Resources Policy, Elsevier, vol. 92(C).
    2. Hepei Li & Chen Chen & Muhammad Umair, 2023. "Green Finance, Enterprise Energy Efficiency, and Green Total Factor Productivity: Evidence from China," Sustainability, MDPI, vol. 15(14), pages 1-14, July.
    3. Lu, Qingchang & Umair, Muhammad & Qin, Zhilong & Ullah, Mirzat, 2024. "Exploring the nexus of oil price shocks: Impacts on financial dynamics and carbon emissions in the crude oil industry," Energy, Elsevier, vol. 312(C).
    4. Muhammad Zubair Chishti & Eyup Dogan, 2024. "Analyzing the determinants of renewable energy: The moderating role of technology and macroeconomic uncertainty," Energy & Environment, , vol. 35(2), pages 874-903, March.
    5. Zheng, Xiumin & Imran, Muhammad & Umair, Muhammad & Lin, Chen & Dong, Yue, 2025. "Modern panelizing and optimization techniques for renewable energy projects; perspectives on how CO2 emissions impact the circular economy," Energy, Elsevier, vol. 323(C).
    6. Zhang, Jiahao & Chen, Xiaodan & Wei, Yu & Bai, Lan, 2023. "Does the connectedness among fossil energy returns matter for renewable energy stock returns? Fresh insights from the Cross-Quantilogram analysis," International Review of Financial Analysis, Elsevier, vol. 88(C).
    7. Ullah, Mirzat & Umair, Muhammad & Sohag, Kazi & Mariev, Oleg & Khan, Muhammad Asif & Sohail, Hafiz M., 2024. "The connection between disaggregate energy use and export sophistication: New insights from OECD with robust panel estimations," Energy, Elsevier, vol. 306(C).
    8. Li, ChangZheng & Umair, Muhammad, 2023. "Does green finance development goals affects renewable energy in China," Renewable Energy, Elsevier, vol. 203(C), pages 898-905.
    9. Khan, Yasir & Oubaih, Hana & Elgourrami, Fatima Zahra, 2022. "The effect of renewable energy sources on carbon dioxide emissions: Evaluating the role of governance, and ICT in Morocco," Renewable Energy, Elsevier, vol. 190(C), pages 752-763.
    10. Zobeidi, Tahereh & Komendantova, Nadejda & Yazdanpanah, Masoud, 2022. "Social media as a driver of the use of renewable energy: The perceptions of instagram users in Iran," Energy Policy, Elsevier, vol. 161(C).
    11. Zhang, Yang & Alharthi, Majed & Ahtsham Ali, Syed & Abbas, Qaiser & Taghizadeh-Hesary, Farhad, 2022. "The eco-innovative technologies, human capital, and energy pricing: Evidence of sustainable energy transition in developed economies," Applied Energy, Elsevier, vol. 325(C).
    12. Dong, Chunlong & Wu, Hao & Zhou, Jianwen & Lin, Huifang & Chang, Lei, 2023. "Role of renewable energy investment and geopolitical risk in green finance development: Empirical evidence from BRICS countries," Renewable Energy, Elsevier, vol. 207(C), pages 234-241.
    13. Daniel Ştefan Armeanu & Georgeta Vintilă & Ştefan Cristian Gherghina, 2017. "Does Renewable Energy Drive Sustainable Economic Growth? Multivariate Panel Data Evidence for EU-28 Countries," Energies, MDPI, vol. 10(3), pages 1-21, March.
    14. Sharma, Gagan Deep & Verma, Mahesh & Shahbaz, Muhammad & Gupta, Mansi & Chopra, Ritika, 2022. "Transitioning green finance from theory to practice for renewable energy development," Renewable Energy, Elsevier, vol. 195(C), pages 554-565.
    15. Pambudi, Nugroho Agung & Ulfa, Desita Kamila, 2024. "The geothermal energy landscape in Indonesia: A comprehensive 2023 update on power generation, policies, risks, phase and the role of education," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PB).
    16. Yu, Miaozhi & Wang, Yifan & Umair, Muhammad, 2024. "Minor mining, major influence: Economic implications and policy challenges of artisanal gold mining," Resources Policy, Elsevier, vol. 91(C).
    17. Wu, Qihan & Yan, Dong & Umair, Muhammad, 2023. "Assessing the role of competitive intelligence and practices of dynamic capabilities in business accommodation of SMEs," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 1103-1114.
    18. Haider Mahmood & Muhammad Shahid Hassan & Soumen Rej & Maham Furqan, 2023. "The Environmental Kuznets Curve and Renewable Energy Consumption: A Review," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 279-291, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tawiah, Vincent & Zakari, Abdulrasheed & Wang, Yan & Osei-Tutu, Francis, 2025. "Enhancing energy transition: The role of private foreign investment and aid in developing nations," Energy Economics, Elsevier, vol. 152(C).

    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. Zheng, Xiumin & Imran, Muhammad & Umair, Muhammad & Lin, Chen & Dong, Yue, 2025. "Modern panelizing and optimization techniques for renewable energy projects; perspectives on how CO2 emissions impact the circular economy," Energy, Elsevier, vol. 323(C).
    2. Ruan, Yunsheng & Wang, Wenqing & Abubakar, Muhammad & Ahmad, Nazeer, 2025. "Global economic resilience: Developing green growth strategies, renewable energy integration, and environmental economics for sustainability," Renewable Energy, Elsevier, vol. 251(C).
    3. Cao, Shanshan & Huang, Lin & Zhang, Qingping & hán, Zǐ, 2024. "Energy transition to green energy sources – Role of socioeconomic disparities and administrative policies," Energy, Elsevier, vol. 312(C).
    4. Wang, Jiale & Wang, Liu, 2025. "Industrial energy organizations: cost sharing, grid effect, and storing energy development," Energy, Elsevier, vol. 328(C).
    5. Haroon, Muhammad & Ullah, Mirzat & Li, Zhanqiang & Zhu, Shuo & Wang, Judong & Hsueh, Chu-Pin (Eugune), 2025. "Impact of emerging technologies on corporate social responsibility in mining industry," Resources Policy, Elsevier, vol. 102(C).
    6. Zhang, Yuan & Zhang, Huaqiao & Ullah, Mirzat & Nazir, Sidra & Chun, Zhong, 2024. "Intellectual property protection in the oil, gold sectors and mineral resources rent on indigenous populations: Preserving innovation and value," Resources Policy, Elsevier, vol. 95(C).
    7. Cheng, WeiJin & Ming, Kai & Ullah, Mirzat, 2024. "Oil price volatility prediction using out-of-sample analysis – Prediction efficiency of individual models, combination methods, and machine learning based shrinkage methods," Energy, Elsevier, vol. 300(C).
    8. Liu, Yi & Ma, Xiaoyun & Zhu, Yan & Gulzar, Fatima & Guliyeva, Shafa, 2024. "Harnessing corporate digitalization for green tech advancements: The mediating influence of mineral resource endowments," Resources Policy, Elsevier, vol. 97(C).
    9. Huang, Weiping & Das, Ghansham & Dilanchiev, Azer & Giyasova, Zeynab & Gu, Mangi, 2024. "Role of multiple energy sources under carbon neturality goals, income and energy consumption in transition economies: A joint case study between China and Uzbekistan," Energy, Elsevier, vol. 309(C).
    10. Yuan, Junli & lv, Zhaohe & Aliyeva, Tahmina & Chen, Xu, 2024. "Optimization of production, distribution, natural resources and capacity planning throughout process sector worldwide supply chains with various goals," Resources Policy, Elsevier, vol. 97(C).
    11. Li, Qingwei & He, Huiming & Oskenbayev, Yessengali & Ullah, Ihsan, 2024. "Exploring the nexus of geopolitical risk, green financing, and natural resource rents: A study of Russia's economic growth," Resources Policy, Elsevier, vol. 96(C).
    12. Li, Wei & Abu bakr, Muhammad, 2025. "Assessing the economic feasibility of renewable integration in district heating and cooling networks for sustainable urban development," Energy, Elsevier, vol. 339(C).
    13. Chen, Guoli & Qian, Zhe & Bolatbek, Botagoz & Na, Liu, 2024. "A comparative study of the nexus of natural resource investment in national economies: Effects on cultural communication and economic growth," Resources Policy, Elsevier, vol. 94(C).
    14. Wang, Yaobin, 2026. "Energy security and economic growth: Analyzing the impact of fossil fuels in SAARC countries," Energy Policy, Elsevier, vol. 208(C).
    15. Mao, Yanfei & E, Shiju & Zhu, Chungeng, 2024. "Modern developments and analysis of household electricity utilization by applying smart meter and its findings," Energy, Elsevier, vol. 310(C).
    16. Zhang, Chiming & Chen, Kaijia, 2026. "Unravelling the interplay of crude oil, renewable energy, and commodity price volatility: A DCC-GARCH model approach on the Chinese stock market," Renewable Energy, Elsevier, vol. 256(PD).
    17. Meng, Fanting, 2024. "Driving sustainable development: Fiscal policy and the promotion of natural resource efficiency," Resources Policy, Elsevier, vol. 90(C).
    18. Huang, Weiping & Min, Hui, 2025. "Social license for the hydrogen economy: Evidence from a choice-based conjoint study on public acceptance," Energy, Elsevier, vol. 335(C).
    19. Aziz, Muhammad, 2026. "Hydrogen energy integration for renewable power transition in South Asia: A strategic assessment towards sustainable development," Renewable Energy, Elsevier, vol. 258(C).
    20. Huang, Lei, 2024. "Green bonds and ESG investments: Catalysts for sustainable finance and green economic growth in resource-abundant economies," Resources Policy, Elsevier, vol. 91(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:eee:renene:v:251:y:2025:i:c:s0960148125009978. 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: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    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.