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<p>Renewable energy transition is a crucial issue for economic and environmental sustainability. Therefore, this research explores the relationship between policy uncertainty, innovation, foreign direct investment, and the adoption of renewable energy in a panel of 16 OECD countries from 1990 to 2023. Using the panel-VAR approach, the findings reveal intricate and dynamic linkages between technological innovation, political uncertainty, GDP, foreign direct investment (FDI), and renewable energy. The results, based on GMM estimations and VAR-Granger causality tests, highlight the importance of considering the long-term interactions among these variables. The cointegration of the variables underscores their interconnectedness over time, while the causality tests demonstrate the reciprocal effects that may arise between them.</p>

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Policy uncertainty and renewable energy transition in the selected OECD countries: do technological innovation and foreign direct investment matter?

  • 期刊论文

  • 发表日期：

    2025年6月24日

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  • Kais Saidi,
  • Ali Lamouchi,
  • Mohammad Mafizur Rahman

摘要

Renewable energy transition is a crucial issue for economic and environmental sustainability. Therefore, this research explores the relationship between policy uncertainty, innovation, foreign direct investment, and the adoption of renewable energy in a panel of 16 OECD countries from 1990 to 2023. Using the panel-VAR approach, the findings reveal intricate and dynamic linkages between technological innovation, political uncertainty, GDP, foreign direct investment (FDI), and renewable energy. The results, based on GMM estimations and VAR-Granger causality tests, highlight the importance of considering the long-term interactions among these variables. The cointegration of the variables underscores their interconnectedness over time, while the causality tests demonstrate the reciprocal effects that may arise between them.