Does Innovation and Foreign Direct Investment Affect Renewable Energy Consumption? Evidence from Developing Countries

Abstract

The purpose of the study to analyze the long-run and short-run effects of foreign direct investment, technological innovation, economic growth, and greenhouse gas emission has show the impact in developing countries from 1991 to 2021on renewable energy. Applying dynamic panel ARDL technique, the outcomes confirm that, economic growth, foreign direct financing and technological innovations take a negative impact on sources of energy. However, greenhouse gas emission has a significant positive influence on renewable energy. The impression of economic growth, FDI, and technological innovation, is positive, fostering to energy use and greenhouse emissions in the developing countries. The practical remedies are exclusive and give policy suggestions; such as, financial markets in the developing countries must be encouraged for the reason that they are the core determinants of the renewable energy sector and economic growth, reducing greenhouse emissions. Moreover, investment in the R&D of technological innovations is much needed in these countries.