Determinants of renewable energy consumption in South American countries
Authors
- Julio César Cacay Cacay Investigador Independiente
-
Lenny Beatriz Capa Benítez
Universidad Técnica de Machala
https://orcid.org/0000-0003-2841-5219
DOI:
https://doi.org/10.33936/eca_sinergia.v17i1.7915Keywords:
Renewable energy, economic factors, political and social factors, financial factors, panel data.Abstract
The objective of this study is to determine the effect of economic, political-social, and financial factors on renewable energy consumption in South American economies from 2000 to 2019. Methodologically, this is a correlational study with an explanatory scope, employing a quantitative-deductive approach. A panel data set comprising 10 South American countries was constructed, and clustered ordinary least squares estimates, as well as Feasible Generalized Least Squares estimators and Panel-Adjusted Standard Errors. The main results show that trade openness, the governance index, and financial development have a positive and statistically significant effect on renewable energy consumption. In contrast, per capita Gross Domestic Product (GDP) and the human capital index have a negative and statistically significant effect on renewable energy consumption. However, Foreign Direct Investment (FDI) and life expectancy did not show statistical significance in explaining renewable energy consumption. These empirical findings can serve as a reference for governments in implementing policies and making decisions that favor those potential drivers of renewable energy consumption.
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