There is an extensive body of research addressing the topic of how economic activities and

environmental factors impact renewable energy. The determinants of renewable energy have
been investigated via a variety of time intervals, factors, and methods in diverse countries and
regions. Prior research have investigated the factors influence the adoption of renewable energy
has frequently utilized economic and environmental indicators, including energy prices, CO2
emissions, economic growth, trade openness, employment, income level, trade globalization and
technological innovations advancement. Additionally, there exist studies investigating certain
political determinants of environmental problems, the lack of research related to institutional
determinants of renewable energy is particularly diminutive. The presence of this gap in the
existing literature requires a more comprehensive analysis of the political determinants affecting
renewable energy.
As stated earlier, a substantial portion of research investigates the relationship between
renewable energy and wider economic and environmental variables.
(Alam & Murad, 2020) found that economic growth, trade openness, and technological progress
significantly influence renewable energy use in the long run among 25 developed countries, with
mixed short-term effects.
(Salim & Rafiq, 2012) studied the factors influencing renewable energy consumption within six
emerging economies from 1980 to 2006 by applying Fully Modified Ordinary Least Squares
(FMOLS), Dynamic Ordinary Least Squares (DOLS), and Granger causality techniques.
Research found that income levels and pollutant emissions significantly influence renewable
energy consumption in Brazil, China, India, and the US. In the Philippines and Turkey, income
levels are the key determinant. The study also identified a bidirectional causality between income
and renewable energy consumption, and between renewable energy use and pollutant emissions
in short run.
Mariana Aguirre investigated the determinants of renewable energy production in 27 countries
from 1990-2014.The results reveal that higher economic growth and increase in unemployment
level and government debt acted as stimulators of renewable energy generation.
(Hassan et al., 2020) found that in Pakistan, higher income levels lead to reduced CO2
emissions, aligning with the Environmental Kuznets Curve. They also discovered a mutual
causality between CO2 emissions and institutional quality.
(Ohler & Fetters, 2014) analyzed the causal relationship between economic growth and
renewable electricity of 20 OECD countries from 1990 to 2008 panel error correction model.
The findings pointed out that renewable energy generation and GDP are bidirectionally
correlated, with biomass, hydropower, and waste electricity significantly impacting GDP in the
long term.
(Bersalli et al., 2020) conducted an econometric analysis with in 50 countries (30 in Europe and
20 in Latin America) during 1995–2015 for assessing renewable energy policy effectiveness.
The results indicates that public policies positively impact renewable energy (RE) investment.
However, tax incentives alone are insufficient for implementing RE technology.
(Bhattacharya et al., 2017) studied that increased renewable energy consumption positively
impacts economic output and reduces CO2 emissions among 85 developing countries during
1991-2012. The study emphasizes the importance of renewable energy and good governance in
fostering economic growth and reducing CO2 emissions.
Tomiwa Sunday Adebayo analyzed the effect of political risk, economic growth, trade
globalization, renewable energy use on CO2 emissions from 1990-2018 using dynamic ARDL
method. The results reveal that economic growth, political risk, renewable energy use, and trade
globalization are long-term predictors of CO2 emissions in Canada. Moreover, the findings also
confirm that political stability brings more foreign direct investment
(Dogan et al., 2021) analyzed that a 1% increase in GDP per capita and energy prices can lead to
an increase in renewable energy between 0.05% and 1.01%, and 0.07% and 0.99% respectively,
across 78 countries (24 developing and 48 developed) from 1980-2016. The study also revealed
that oil prices, income, and CO2 emissions significantly influence renewable energy deployment.
(Mehmood, 2021) studied the impacts of non renewable and renewable energy and socio
economic factors(institutional quality, population growth, GDP, and capital formation) on CO2
emissions in South Asian economies including (Bangladesh, India, Nepal ,Pakistan, and Sri
Lanka) using ARDL technique from 1996Q1-2019Q4 .In the long run the results shows that
economic growth is unsustainable in Pakistan ,Bangladesh and Srilanka while Nepal is growing
and reducing its CO2 emissions. Moreover, the better institutional quality can help India Sri
Lanka and Nepal in achieving their sustainable clean energy production. Also, population growth
negatively affects CO2 emissions in Pakistan and Bangladesh.
Awijen et al., 2022 researched the factors influencing renewable energy deployment in nine
MENA countries from 1984-2014, finding that governance quality, innovation, political stability,
and financial development are key drivers. The study also highlighted the potential of high
efficient performance to influence good governance for increasing renewable energy
deployment.
(Bersalli et al., 2020) conducted an econometric analysis with in 50 countries (30 in Europe and
20 in Latin America) during 1995–2015 for assessing renewable energy policy effectiveness.
The results indicates that public policies positively impact renewable energy (RE) investment.
However, tax incentives alone are insufficient for implementing RE technology.
(Foye, 2023) examined the key macroeconomic factors (income, exchange rate, and inflation)
that influence the adoption of renewable energy in Nigeria using an ARDL approach from 1990
to 2020.The findings reveal that these factors significantly influence renewable energy adoption.
The study also highlighted that education and health human capital helps in development of
promoting renewable energy.
(Marques & Fuinhas, 2011) examined that income and fossil fuel prices don’t significantly
impact renewable energy enhancement across 24 EU countries from 1990-
2016.However,conventional energy resources impedes renewable energy deployment, and social
awareness and CO2 reduction are insufficient for promoting a renewable energy transition.
Institutional review:
Although there exists a substantial body of literature concerning the impact of macroeconomic
variables there are few studies examining the institutional determinants that determine the
penetration of renewable energy. In general, initiatives that fall under this category investigate
the ways in which fundamental institutional issues such as lobbying, democracy, and political
risk influence renewable energy.

(Cadoret & Padovano, 2016) analyzed the impact of political factors on the adoption of
renewable energy in EU countries. The results indicate that manufacturing industry lobbying
hinders RE deployment.Moreever,left-wing political parties encourage RE adoption compared
to right-wing parties.
(Burke & Stephens, 2018) investigated the correlation between political powers and renewable
energy highlighting the need to oppose and destabilize established energy systems in order to
achieve a smooth transition away from fossil fuels and toward renewable sources of energy. This
study suggests democratic renewable energy futures can be achieved by strengthening
democratic practices, expanding energy system democratization, and challenging capitalist,
market, growth, and industrialist influences.
(Hussain & Dogan, 2021) examined relationship between institutional quality (IQ), CO2
emissions and energy consumption from 1990-2016 in BRICS economies based on (EKC)
theory. The findings indicates institutional quality and environment-related technologies
negatively impacts ecological footprint. Moreover, increase in economic activities led to
increased pollution.
(Hassan et al., 2020) found that in Pakistan, higher income levels lead to reduced CO2
emissions, aligning with the Environmental Kuznets Curve. They also discovered a mutual
causality between CO2 emissions and institutional quality.
Abdo AL-Barakani’s study on 57 Belt and Road Initiative (BRI) countries from 1992 to 2018
found that financial growth escalates environmental impact. However, the use of renewable
energy and the better institutions minimize this effect.
Tomiwa Sunday Adebayo analyzed the effect of political risk, economic growth, trade
globalization, renewable energy use on CO2 emissions from 1990-2018 using dynamic ARDL
method. The results reveal that economic growth, political risk, renewable energy use, and trade
globalization are long-term predictors of CO2 emissions in Canada. Moreover, the findings also
confirm that political stability brings more foreign direct investment.
(Bekun et al., 2021) that the E7 economies have lower institutional quality and commitment to
environmental sustainability compared to the G7. Also, poor institutional structures lead to a
decline in environmental quality, while economic globalization and renewables enhance it.
(Lv, 2017) conducted research on effect of democracy on C02 emissions from 1977-2010 in 19
emerging countries using panel quantile regression. The results of this study presented another
insight that democracy reduces CO2 emissions for countries reached at certain level of income.
(Salman et al., 2019) identified a positive correlation between institutional quality, CO2
emissions, and economic growth in three East Asian economies from 1990-2016. Additionally,
institutional effectiveness, trade openness, and energy use enhance economic growth, with a
unidirectional causality between institutional quality and economic growth.
(Hassan et al., 2020) analyzed the impact of economic, financial and institutional quality on
environmental quality between 58 MEA (Middle East & African) and 41 EU (European Union)
during 1990 to 2011. The results shows both regions show a consistent increase in CO2
emissions with GDP growth and for better economic growth and reduction in CO2 emissions
local institutions need regulation and improvement.
(Lau et al., 2014) investigated the casual relationship between institutional quality, CO2
emissions, exports, and economic growth during 1984- 2000 in Malaysia using ARDL model
The findings shows that GDP growth rate is positively correlated with CO2 emissions, exports,
and institutional quality. Also, the implementation of law and order significantly impacts the
reduction of CO2 emissions.
(Mehmood, 2021) studied the impacts of non-renewable and renewable energy and socio
economic factors(institutional quality, population growth, GDP, and capital formation) on CO2
emissions in South Asian economies including (Bangladesh, India, Nepal ,Pakistan, and Sri
Lanka) using ARDL technique from 1996Q1-2019Q4 .In the long run the results shows that
economic growth is unsustainable in Pakistan ,Bangladesh and Srilanka while Nepal is growing
and reducing its CO2 emissions. Moreover, the better institutional quality can help India Sri
Lanka and Nepal in achieving their sustainable clean energy production. Also, population growth
negatively affects CO2 emissions in Pakistan and Bangladesh.
(Dumas et al., 2016) studied the dynamic model of renewable energy policy considering long-
term horizons, electoral competition, and technological path dependency. This study highlighted
that political dynamics crucially shape renewable energy growth and CO2 emissions that
subsequently affects a country’s climate mitigation goals.