Assessing the public funding’s impact on renewable energy: Evidence from developing countries

In this study, the authors examine the impact of public funding of renewable energy technologies in 36 developing countries between 2000 and 2020. Using panel cointegration approach, research explains the long-term relationship between the relevant variables. This study applies a pooled mean group-panel autoregressive distributive lag (PMG-ARDL) method and confirms a significant link between uses of renewable energy per capita, public flow and income per capita. It highlights the impact of public financial flows on renewable energy in developing countries. The study nevertheless urges a comprehensive approach, especially emphasis on the availability of effective measures in the financial instrument development and in the process of creating public-private partnerships in the energy renewables market. Governments are encouraged to focus on efficiency, transparency and responsiveness and to adapt their strategies to the specific situation in each country to ensure effective implementation.