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Trade Openness, Economic Growth, Capital, and Financial Globalization: Unveiling Their Impact on Renewable Energy Consumption

Author

Listed:
  • Bartosz Jóźwik

    (Department of International Economics, Institute of Economics and Finance, The John Paul II Catholic University of Lublin, 20-950 Lublin, Poland)

  • Sevgi Sümerli Sarıgül

    (Department of Foreign Trade, Vocational School of Social Sciences, Kayseri University, 38280 Kayseri, Turkey)

  • Betül Altay Topcu

    (Department of Foreign Trade, Vocational School of Social Sciences, Kayseri University, 38280 Kayseri, Turkey)

  • Murat Çetin

    (Faculty of Economics and Administrative Sciences, Tekirdag Namik Kemal Üniversity, 59030 Tekirdag, Turkey)

  • Mesut Doğan

    (Department of Banking and Finance, Vocational School of Bozuyuk, Bilecik Seyh Edebali University, 11100 Bilecik, Turkey)

Abstract

Renewable energy sources are becoming increasingly popular due to their advantages over fossil fuels, their economic benefits, and growing environmental concerns. Researchers are particularly focused on understanding the factors that affect the efficiency of various energy sources. This paper explores the relationship between renewable energy consumption and trade openness from 1990 to 2018 among the top 15 countries that consume the most renewable energy. The study also considers economic growth, natural resources, capital, and financial globalization as additional factors influencing renewable energy use. To analyze the data, the paper utilizes advanced panel data techniques, including the dynamic Seemingly Unrelated Regression (DSUR) and Dimutrescu–Hurlin panel bootstrap causality methods. The findings reveal cross-sectional dependence and slope heterogeneity in the model. The results show that trade openness, economic growth, and capital investment promote renewable energy consumption, while financial globalization tends to reduce it. Additionally, the study finds one-way causality from trade openness, economic growth, natural resources, capital, and financial globalization to renewable energy consumption. These insights can inform the development of renewable energy policies in the countries examined.

Suggested Citation

  • Bartosz Jóźwik & Sevgi Sümerli Sarıgül & Betül Altay Topcu & Murat Çetin & Mesut Doğan, 2025. "Trade Openness, Economic Growth, Capital, and Financial Globalization: Unveiling Their Impact on Renewable Energy Consumption," Energies, MDPI, vol. 18(5), pages 1-19, March.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:5:p:1244-:d:1604677
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    Citations

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    Cited by:

    1. Chukwuemelie Chukwubuikem Okpezune & Mehdi Seraj & Hüseyin Özdeşer, 2025. "The Relationship Between the Energy Market, Economic Growth, and Stock Market Performance: A Case Study of COMESA," Energies, MDPI, vol. 18(16), pages 1-24, August.
    2. Nemanja Lojanica & Danijela Pantović & Miloš Dimitrijević & Saša Obradović & Dumitru Nancu, 2025. "The Effects of Renewable Energy, Economic Growth, and Trade on CO 2 Emissions in the EU-15," Energies, MDPI, vol. 18(16), pages 1-27, August.
    3. Dandan Qi & Weicheng Zhang, 2025. "Green Taxation, Trade Liberalization and Natural Resource Utilization," Sustainability, MDPI, vol. 17(21), pages 1-34, October.
    4. 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.
    5. Mesut Dogan & Irina Georgescu & Hamza Çeştepe & Sevgi Sümerli Sarıgül & Havanur Ergün Tatar, 2025. "Renewable Energy Consumption and the Ecological Footprint in Denmark: Assessing the Influence of Financial Development and Agricultural Contribution," Agriculture, MDPI, vol. 15(8), pages 1-19, April.
    6. Bartosz Jóźwik & Siba Prasada Panda & Aruna Kumar Dash & Pritish Kumar Sahu & Robert Szwed, 2025. "Revisiting the Nexus Between Energy Consumption, Economic Growth, and CO 2 Emissions in India and China: Insights from the Long Short-Term Memory (LSTM) Model," Energies, MDPI, vol. 18(15), pages 1-23, August.
    7. Dilber Doğan & Yakup Söylemez & Şenol Doğan & Neslihan Akça, 2025. "The Impact of Financial Development on Renewable Energy Consumption: Evidence from RECAI Countries," Sustainability, MDPI, vol. 17(14), pages 1-18, July.
    8. Naveed Khan & Anam Tariq & Syed Zulfiqar Ali Shah & Hassan Javed, 2026. "Quantile time–frequency connectedness and spillover between artificial intelligence, clean energy, and traditional asset classes: insights and portfolio implications," Future Business Journal, Springer, vol. 12(1), pages 1-39, December.

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