The effect of solar energy production on financial development and economic growth: Evidence from 11 selected countries

Altay Topcu B., Doğan M.

ENERGY SOURCES, PART B: ECONOMICS, PLANNING AND POLICY, vol.1, no.17, pp.1-20, 2022 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 1 Issue: 17
  • Publication Date: 2022
  • Doi Number: 10.1080/15567249.2022.2141377
  • Journal Name: ENERGY SOURCES, PART B: ECONOMICS, PLANNING AND POLICY
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, Aerospace Database, Applied Science & Technology Source, CAB Abstracts, Communication Abstracts, Compendex, Computer & Applied Sciences, Environment Index, Greenfile, INSPEC, Metadex, Pollution Abstracts, Public Affairs Index, Veterinary Science Database, Civil Engineering Abstracts
  • Page Numbers: pp.1-20
  • Keywords: Solar energy production, economic growth, financial development, Dynamic SUR, FOREIGN DIRECT-INVESTMENT, TESTING SLOPE HOMOGENEITY, RENEWABLE ENERGY, CO2 EMISSIONS, CAUSAL RELATIONSHIP, CLEAN ENERGY, HETEROGENEOUS PANEL, CONSUMPTION NEXUS, ASIAN ECONOMIES, TRADE OPENNESS
  • Kayseri University Affiliated: Yes

Abstract

The aim of this study was to investigate the impact of solar energy production

on financial development and economic growth in 11 leading countries

in solar energy production over the period 2000–2019. The results of the

analysis indicated that solar energy production had a positive and significant

impact on financial development, however, not on economic growth. It was

found that the impacts of capital and direct investment variables on financial

development and economic growth were positive and significant. According

to Dumitrescu-Hurlin’s causality test results, a bidirectional causality relationship

was determined to exist between solar energy production and financial

development. Furthermore, a unidirectional causality relationship running

from economic growth to solar energy production was detected. In this

context, the analysis results confirmed the conservation hypothesis. The

results could be a guide on solar energy production policies. By considering

the impacts of solar energy production on financial development and economic

growth, more effective policy decisions could be made.