Financing renewable energy projects: An empirical analysis for Turkey

Abstract

The main purpose of this study is to estimate the impact of foreign direct investment (FDI) inflows and stock market capitalization on the renewable energy consumption (REC). In addition, the study aims to ivestigate the impact of financial development (FD) and research-development expenditures (R and D) on the REC. The study utilizes annual data from 1990 to 2015 in Turkey using the autoregressive distributed lag (ARDL) approach. The findings show that, based on the ARDL estimates, there exist long-run equilibrium relationships among the variables. The results of this study also indicate that the REC is mainly determined by FDI inflows, FD and research-development expenditures in the long run.