Exploring Investment Dynamics in Renewable Energy for Low-Carbon Economies through a Global Comparative Analysis

Abstract

This study examines factors influencing investment in renewable energy across low-carbon and high-carbon economies. A dynamic panel analysis was conducted on 29 countries to assess renewable investment trends. The findings reveal similar investment dynamics in both economic panels, influenced by nuclear power generation, GDP, and technological efficiency. The results highlight a collective effort among nations to reduce CO2 intensity, reflecting a strategic transition toward sustainable energy sources. This shift aligns with global sustainability goals, emphasizing a commitment to cleaner energy. The analysis suggests that energy sustainability depends on the strategic utilization of renewable resources, which can complement nuclear technology. A balanced energy portfolio integrating renewables and nuclear power offers synergistic benefits, surpassing the limitations of individual sources. Policymakers should focus on fostering an environment conducive to renewable energy investment by enhancing technological advancements, financial incentives, and regulatory frameworks. Strengthening international collaborations can accelerate the transition toward a low-carbon economy. Economic growth and energy security must align with environmental sustainability for long-term success. Investments in renewable energy can drive innovation, create employment opportunities, and reduce dependency on fossil fuels. Diversification of energy sources is crucial to mitigate risks associated with overreliance on a single energy type. Government policies should support infrastructure development, research, and incentives for renewable energy projects. Technological advancements in storage and efficiency can further enhance the viability of renewables. The study underscores the importance of integrating renewable energy into mainstream energy systems. Strategic planning and sustained investment can facilitate a smoother transition to a sustainable energy future.