top of page

Published Paper

Energy Research & Social Science

Energy Research & Social Science

Financing renewable energy development: Insights from 55 countries

Thai-Ha Le, Canh Phuc Nguyen, Donghyun Park


Finance, Renewable energy, GMM, Panel data analysis, Global sample

Nguyễn Phúc Cảnh

Cảnh Nguyễn


This research note examines the effects of financial development on the deployment of renewable energy (RE). We apply a two-step system generalized method of moments (GMM) approach to a global sample of 55 countries in 2005–2014. Our results indicate that financial sector development is a significant determinant of RE deployment. This implies that policy makers should pursue policies that facilitate financing for RE firms. The positive effect of financial development on RE appears to be statistically significant for high-income countries but insignificant for low- and middle-income countries. The findings seem to be robust to different measures of financial development. Investing in RE requires not just more finance but also sophisticated finance that can address the complex risks associated with an evolving technology.

Thai-Ha Le, Canh Phuc Nguyen, Donghyun Park (2020), "Financing renewable energy development: Insights from 55 countries", Energy Research & Social Science, 68, pp. 101537, DOI: 10.1016/j.erss.2020.101537

bottom of page