The effect of solar energy production on financial development and economic growth: Evidence from 11 selected countries

ALTAY TOPCU B., DOĞAN M.

Energy Sources, Part B: Economics, Planning and Policy, vol.17, no.1, 2022 (SCI-Expanded) identifier

  • Publication Type: Article / Article
  • Volume: 17 Issue: 1
  • Publication Date: 2022
  • Doi Number: 10.1080/15567249.2022.2141377
  • Journal Name: Energy Sources, Part B: Economics, Planning and Policy
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, Aerospace Database, Applied Science & Technology Source, CAB Abstracts, Communication Abstracts, Compendex, Computer & Applied Sciences, Environment Index, Greenfile, INSPEC, Metadex, Pollution Abstracts, Public Affairs Index, Veterinary Science Database, Civil Engineering Abstracts
  • Keywords: Dynamic SUR, economic growth, financial development, Solar energy production
  • Bilecik Şeyh Edebali University Affiliated: Yes

Abstract

The aim of this study was to investigate the impact of solar energy production on financial development and economic growth in 11 leading countries in solar energy production over the period 2000–2019. The results of the analysis indicated that solar energy production had a positive and significant impact on financial development, however, not on economic growth. It was found that the impacts of capital and direct investment variables on financial development and economic growth were positive and significant. According to Dumitrescu-Hurlin’s causality test results, a bidirectional causality relationship was determined to exist between solar energy production and financial development. Furthermore, a unidirectional causality relationship running from economic growth to solar energy production was detected. In this context, the analysis results confirmed the conservation hypothesis. The results could be a guide on solar energy production policies. By considering the impacts of solar energy production on financial development and economic growth, more effective policy decisions could be made.