The role of financial development and government effectiveness on renewable and non-renewable energy generation: Evidence from G-20 countries with the Pooled Bewley estimator

Öz

The level of external dependence in the energy sector has become a critical indicator of national development and geopolitical influence. This study aims to examine whether financial development and government effectiveness impact renewable and non‑renewable energy production in G‑20 countries. The analysis covers 19 member countries (excluding the European Union) using annual data from 1999 to 2024. All models are first estimated using the Driscoll–Kraay estimator. In addition, the Pooled Bewley estimator, newly introduced by Chudik, Pesaran, and Smith (2023), is employed to enhance the robustness and consistency of the results. The empirical findings indicate a positive relationship between financial development and renewable energy production, while a relationship with non‑renewable energy production is statistically insignificant. Government effectiveness exhibits a positive effect on renewable energy generation in some model specifications; however, this effect does not persist in the long run. Overall, the results suggest that financial sector development should prioritize green credit allocation and climate‑aligned portfolio composition. It is recommended that resources should be directed towards low-carbon technologies and the financing of renewable energy investments, rather than projects that encourage dependence on fossil fuels, in line with the findings of the study.

Anahtar Kelimeler

• Financial Development
• Renewable Energy Consumption
• G-20 Countries
• The Pooled Bewley Estimator.

Finansal gelişme, yönetim etkinliğinin yenilenebilir ve yenilenemez enerji üretimindeki rolü: Pooled Bewley tahmincisi ile G-20 ülkeleri üzerine bir inceleme

Öz

Enerji sektöründeki dış bağımlılık düzeyi, ulusal kalkınma ve jeopolitik etkinin önemli bir göstergesi haline gelmiştir. Bu çalışma, finansal gelişme ve hükümet etkinliğinin G-20 ülkelerinde yenilenebilir ve yenilenemez enerji üretimini etkileyip etkilemediğini incelemektedir. Analiz, 1999-2024 yıllarına ait yıllık frekanstaki veriler kullanılarak 19 üye ülkeyi (Avrupa Birliği hariç) kapsamaktadır. Tüm modeller ilk olarak Driscoll-Kraay tahmincisi ile tahmin edilmiştir. Ayrıca, sonuçların sağlamlığını ve tutarlılığını artırmak için Chudik, Pesaran ve Smith (2023) tarafından yeni bir tahminci olarak geliştirilen Pooled Bewley tahmincisi kullanılmıştır. Ampirik bulgular, finansal gelişme ile yenilenebilir enerji üretimi arasında pozitif bir ilişki olduğunu gösterirken, yenilenemez enerji üretimi ile istatistiksel olarak anlamlı bir ilişki tespit edilememiştir. Hükümetin etkinliğinin bazı model spesifikasyonlarında yenilenebilir enerji üretimi üzerinde olumlu bir etkisi gözlenmiş ancak; bu etkinin uzun vadede devam etmediği bulgusuna ulaşılmıştır. Sonuçlar genel olarak, finansal sektör gelişiminin yeşil kredi tahsisine ve iklime uygun portföy bileşimine öncelik vermesi gerektiğini göstermektedir. Kaynakların, fosil yakıtlara bağımlılığı teşvik eden projelerden ziyade, düşük karbonlu teknolojilere ve yenilenebilir enerji yatırımlarının finansmanına yönlendirilmesi çalışma bulguları doğrultusunda önerilmektedir.

Anahtar Kelimeler

• Finansal Gelişme
• Yenilenebilir Enerji Tüketimi
• G-20 Ülkeleri
• Pooled Bewley Tahmincisi

Kaynakça

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