Public Investment and Renewable Energy in Developing Nations: A Path to Sustainable Growth

This study examines the impact of public finance mechanisms, including public-private partnership (PPP) investments, government subsidies, central government debt, and foreign direct investment (FDI), on renewable energy consumption across five developing countries—Indonesia, Turkey, Ukraine, Malaysia, and South Africa—during the period from 2017 to 2021. Using a panel data regression model, the study reveals that PPP investments have a significant positive effect on renewable energy consumption, highlighting their crucial role in fostering the energy transition in resource-constrained nations. However, the results for government subsidies and central government debt were not statistically significant, suggesting that these public finance tools may not be effectively allocated to promote renewable energy adoption. The findings also demonstrate notable country-specific differences in renewable energy consumption, pointing to the need for tailored policy approaches. This research contributes to the literature by providing empirical evidence on the role of public finance in renewable energy development in emerging economies. Limitations of the study include data constraints and the focus on a small set of countries, which limits the generalisability of the findings. Future research should expand the sample size and explore the long-term effects of public finance mechanisms, as well as the role of institutional quality and governance in shaping renewable energy policies.