The Impact of Economic Policy Uncertainty and Foreign Direct Investments on Renewable Energy Consumption in G-7 Countries

Authors : Fatih Volkan Ayyıldız

Pages : 866-880

Doi:10.25204/iktisad.1739234

View : 726 | Download : 418

Publication Date : 2025-10-31

Article Type : Research Paper

Abstract :This study investigates the impact of economic policy uncertainty and foreign direct investments on renewable energy consumption in G-7 (The Group of Seven) countries using data for the period 2000-2023. At the same time, another important purpose of the study is to investigate the multidirectional relationships of causality between the variables. Within the context of the goal, the relationships between variables are analyzed using Gengenbach, Urbain, and Westerlund, Prais-Winsten and Dumitrescu-Hurlin methods. This study fills the gap in the literature by differing from other studies on the subject in terms of the methods used. According to the findings of Gengenbach, Urbain and Westerlund’s cointegration test, it was found that there was a cointegration relationship between the variables. According to the findings of the Prais-Winsten regression analysis, a 1% increase in foreign direct investment increases renewable energy consumption by approximately 0.30%, at a statistically significant level. According to the findings of Dumitrescu and Hurlin panel causality analysis suggested for heterogeneous panel data, there is a bidirectional causality relationship between all variables. All the findings obtained from the analysis generally support the findings of similar studies in literature.
Keywords : Yenilenebilir enerji, ekonomi politikası belirsizliği, doğrudan yabancı yatırım, Prais-Winsten regresyon, Dumitrescu- Hurlin panel nedensellik

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