Policy Uncertainty and Investment-Driven Growth: Implications of Renewable Energy and Infrastructure Development

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Provides empirical evidence on the long-run cointegration between renewable energy investment and growth under policy uncertainty, useful for macro-energy modeling.

🏛政策担当者:Highlights that transparent and consistent policy frameworks are critical to attract long-term renewable energy investment, reducing uncertainty.

<title>Abstract</title> <p> This study investigates the long-run relationship between economic growth, renewable energy investment, infrastructure investment, and economic policy uncertainty over the period 2005 to 2024, motivated by the growing importance of sustainable development and the need to understand how policy volatility influences investment-driven growth. The primary objective is to examine whether renewable energy and infrastructure investments can sustain economic growth despite uncertainty in the policy environment. To achieve this, the study adopts a quantitative research design, employing correlation analysis and the Autoregressive Distributed Lag (ARDL) cointegration technique to explore both short- and long-run dynamics among the variables. The empirical findings confirm the existence of a stable long-run equilibrium relationship, indicating that economic systems possess inherent self-correcting mechanisms that restore balance following short-term shocks. The estimated error correction coefficient of 40.63% per period reflects a moderate speed of adjustment, underscoring the role of investment-induced multiplier effects in stabilising output. The study contributes to theoretical discourse by integrating the Economic Policy Uncertainty framework, multiplier effect theory, and the constant returns to scale model, thereby offering a comprehensive explanation of the interaction between renewable energy investment and economic growth. From a policy perspective, the results highlight the critical importance of sustained investment in renewable energy and infrastructure as drivers of long-term growth, particularly in economies characterised by institutional instability. The study advocates for transparent and consistent policy frameworks to encourage technological adoption and attract long-term investment. However, limitations related to aggregate data and time scope suggest the need for more granular and longitudinal analyses in future research. <bold>JEL classification</bold> : Q42, O31, E61 </p>

• Research Square https://doi.org/10.21203/rs.3.rs-9344623/v1first seen 2026-05-20 04:36:39 · last seen 2026-05-31 04:21:24