Public investment on renewable energy R&D Projects: The role of geopolitical risk, and economic and political uncertainties
研究了地缘政治风险、经济和政治不确定性如何影响政府对可再生能源研发的公共投资，发现长期内政府会加大投资以保障能源供应和保持优势。
Recently, there has been growing concern about the impacts of geopolitical tension as well as economic and political uncertainties on the decision-making process of governments when it comes to allocating resources for renewable energy R&D. This paper employs the panel autoregressive distributed lag (ARDL), cross-sectional panel autoregressive distributed lag (CS-ARDL) and Fully Modified Ordinary Least Squares (FMOLS) technique to examine the impacts of geopolitical risk, economic and political uncertainties, renewable energy technologies innovations, government financial affordability and CO2 emissions on government spending on renewable energy research and development projects. The novel aspects of the panel ARDL and CS-ARDL methodologies lie in their ability to capture both short-run and long-run dynamics within a panel data framework, as well as their ability to provide a more comprehensive understanding of the relationships under investigation. The empirical results presented in this paper indicate that in the face of ongoing geopolitical tension, as well as economic and political uncertainties, financially capable governments continue to increase their investments in renewable energy R&D in the long run. This strategic move aims to safeguard the supply of renewable energy, uphold economic and political policy credibility, maintain a first-mover advantage, and establish control over the intellectual property rights associated with renewable energy technology. • We study the impacts of geopolitical risk as well as economic and political uncertainties on public renewable energy R&D • Panel ARDL, Panel CS-ARDL and FMOLS techniques are employed to perform the analysis. • With ongoing geopolitical risk and uncertainties, governments increase their investments in renewable energy R&D. • The strategy can maintain energy supply, first-mover advantage, policy credibility, and intellectual property rights.