Understanding the dynamics of public debt on renewable energy investment in developing countries
研究了71个发展中国家2000-2020年间公共债务对可再生能源公共投资的影响，发现两者呈倒U型关系，且金融环境能调节这种影响。
In developing economies, rapid growth is closely tied to public debt (PD), which can impact investment in the energy sector, including renewable energy (RE). Previous studies have examined the impact of PD on RE consumption , but the channel needs to be clarified. The relationship between PD and RE consumption can be influenced by the extent of public investment in RE, which acts as the channel connecting PD to RE consumption. However, the direct impact of PD on public investment in RE remains unexplored. Therefore, this study examines the impact of PD on public investment in RE in 71 developing countries from 2000 to 2020. Using Driscoll–Kraay standard errors, IV-GMM, and quantile regression, this study uncovers an inverse U-shaped relationship between PD and public investment in RE. PD supports public investment in RE up to a certain level, but higher levels of PD hinder further public investment in RE. The study also explored the moderating role of financial institutions and markets on public investment in RE at different levels of PD. It finds that countries can effectively use PD in favorable financial environments to counteract the negative impact on public investment in RE. The results emphasize the need for balanced PD management, robust economic conditions , and solid financial institutions to promote sustainable public investment in RE in developing countries.