Politická ekonomie 2024, Volume 72(2), Special Issue: 357-374 | DOI: 10.18267/j.polek.1438

Does Political (De)stabilization Drive Clean Energy Transition?

Runguo Xu ORCID..., Muntasir Murshed ORCID..., Wenjuan Li
Runguo Xu: School of International Relations, Yonsei University, Republic of Korea
Muntasir Murshed (corresponding author): Department of Economics, School of Business and Economics, North South University, Dhaka, Bangladesh; Department of Business Administration, Daffodil International University, Dhaka, Bangladesh
Wenjuan Li: Institute of Economics and Management, Tomsk State University, Tomsk, Russia

Exploring the political economy of clean energy development, this study appraises how political (de)stabilization influences the clean energy transition process in selected South Asian countries. Using yearly data spanning from 1998 to 2021, the results show that political stabilization facilitates the clean energy transition process by raising the share of renewables in the final energy consumption profiles of the concerned South Asian nations. Contrarily, political destabilization is found to inhibit the transition process. In addition, political stabilization is witnessed to partially offset the clean energy transition-inhibiting impact of rising carbon dioxide emissions across South Asia. Furthermore, the results endorse that financial development and receipts of international remittance contribute to the clean energy transition process while incoming foreign direct investments exert no impact in this regard. Accordingly, a couple of policies are recommended for the concerned South Asian nations.

Keywords: Political instability; political economy; clean energy transition; renewable energy
JEL classification: P48, Q40, Q42

Received: August 2, 2023; Revised: February 19, 2024; Accepted: February 29, 2024; Prepublished online: March 25, 2024; Published: May 1, 2024  Show citation

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Xu, R., Murshed, M., & Li, W. (2024). Does Political (De)stabilization Drive Clean Energy Transition? Politická ekonomie, 72(Spec.issue), 357-374. doi: 10.18267/j.polek.1438
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