<p>In recent years, the transition to renewable energy has become one of the key strategies to combat environmental pollution and mitigate adverse climatic events. However, this energy transition is associated with several economic consequences. Against this backdrop, this study primarily investigates the effect of renewable energy use on export performance in 17 emerging economies over the balanced panel period from 1995 to 2021. Additionally, it explores how financial globalization and government expenditure moderate the effectiveness of renewable energy in driving export growth. Therefore, financial globalization and government expenditure are used as moderating control variables, while real income and exchange rate are included as primary control factors. Employing the CS-ARDL method, this study finds that renewable energy use hampers export performance in emerging economies. This study also finds that both financial globalization and government spending offset the negative impact of clean energy use on export growth, where financial globalization is having a comparatively stronger impact on exports. Surprisingly, the results show that real income negatively impacts export performance while the exchange rate positively influences it. These findings suggest that policymakers in emerging economies should place significant emphasis on the moderating role of financial globalization and government spending in sustaining export growth.</p>

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Do Financial Globalization and Government Spending Mitigate the Detrimental Impact of Renewable Energy Use on Export Performance in Emerging Economies?

  • Himanshu Sekhar Panda,
  • Mantu Kumar Mahalik,
  • Kashif Nesar Rather

摘要

In recent years, the transition to renewable energy has become one of the key strategies to combat environmental pollution and mitigate adverse climatic events. However, this energy transition is associated with several economic consequences. Against this backdrop, this study primarily investigates the effect of renewable energy use on export performance in 17 emerging economies over the balanced panel period from 1995 to 2021. Additionally, it explores how financial globalization and government expenditure moderate the effectiveness of renewable energy in driving export growth. Therefore, financial globalization and government expenditure are used as moderating control variables, while real income and exchange rate are included as primary control factors. Employing the CS-ARDL method, this study finds that renewable energy use hampers export performance in emerging economies. This study also finds that both financial globalization and government spending offset the negative impact of clean energy use on export growth, where financial globalization is having a comparatively stronger impact on exports. Surprisingly, the results show that real income negatively impacts export performance while the exchange rate positively influences it. These findings suggest that policymakers in emerging economies should place significant emphasis on the moderating role of financial globalization and government spending in sustaining export growth.