Title: The Impact of Natural Disaster on Renewable Energy: The Role of Foreign Direct Investment and Infrastructure in Asia
Authors:
- Yessi Rahmawati
- Rossanto Dwi Handoyo
- Deni Kusumawardani & Widya Sylviana
Department: Ilmu Ekonomi
Journal Name: Transition Towards a Carbon Free Future
Kinds of Journal: –
Keywords: –
Abstract:
The present research aims to address the empirical gap in understanding the impact of natural disasters on renewable energy consumption, specifically examining the role of foreign direct investment (FDI) and infrastructure. Panel data from 27 selected countries in Asia is utilized to explore the relationship between these variables using a two-step Generalized Method of Moments (GMM) approach. The dataset spans the period from 2010 to 2020, and secondary data from the World Bank and the Center for Research on the Epidemiology of Disasters (CRED) is employed. The study considers renewable energy consumption as the dependent variable, with lagged renewable energy, affected people, and infrastructure serving as independent variables. Additionally, gross domestic product per capita (GDPP) is included as a control variable to enhance data robustness. The findings of the research can be summarized in three main points. Firstly, the lagged renewable energy variable exhibits a positive and significant effect on renewable energy consumption. This suggests that the previous year’s renewable energy levels have a considerable influence on the subsequent year’s consumption, indicating the persistence of renewable energy usage. Secondly, an increase in infrastructure is found to have a statistically significant impact on renewable energy consumption in the selected Asian countries. This highlights the importance of developing and improving sustainable infrastructure to support the growth of renewable energy sectors. Lastly, the unexpected negative relationship between GDPP and renewable energy consumption suggests that middle-income countries may face challenges in adopting renewable energy due to insufficient technological advancements and infrastructure
For details: https://link.springer.com/chapter/10.1007/978-3-031-61660-0_12
