Published Online:July 2026
Product Name:The IUP Journal of Applied Economics
Product Type:Article
Product Code:IJAE010326
DOI:10.71329/IUPJAE/2026.25.3.5-24
Author Name:Aayushi Khandelwal, Samir Ranjan Behera, Anoop K Suresh and Rhythm Bhatia
Availability:YES
Subject/Domain:Economics
Download Format:PDF
Pages:5-24
The state of public finances plays a critical role in facilitating a successful transition to renewable energy sources, especially for emerging market economies (EMEs). The study examines how the level of public debt shapes the adoption of renewable energy consumption (REC) across 17 selected EMEs for the period 2002-2024, while controlling for key factors, including GDP per capita, unemployment rate, trade openness, fuel import dependence, and geopolitical stability. Using panel cointegration regression methods and panel-wise causality tests, the study finds that public debt has a positive impact on REC. The finding underscores the importance of designing a suitable debt management policy to leverage public debt to promote investment and the wider adoption of REC.
Long-term energy security is critical for ensuring that the energy demand, emanating from growing economic prosperity and development needs, is met with adequate energy supply (Eren et al., 2019). Recent global developments, including the post-Covid-19 recovery and the global energy crisis, have spurred increased investment in the renewable energy sector by aligning climate goals, energy security targets, and industrial strategies (REN21, 2024)