Open Access iconOpen Access

ARTICLE

crossmark

Influences of Financial Development and Energy Price on Renewable Energy: An Italian Case

by Asif Raihan1,*, Mohammad Ridwan2, Mahdi Salehi3, Grzegorz Zimon4,*

1 Institute of Climate Change, National University of Malaysia, Bangi, 43600, Selangor, Malaysia
2 Department of Economics, Noakhali Science and Technology University, Noakhali, 3814, Bangladesh
3 Department of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, 9177948974, Iran
4 Department of Finance, Banking and Accountancy, Faculty of Management, Rzeszow University of Technology, Rzeszow, 35-505, Poland

* Corresponding Authors: Asif Raihan. Email: email; Grzegorz Zimon. Email: email

Energy Engineering 2025, 122(2), 493-514. https://doi.org/10.32604/ee.2025.059016

Abstract

Global climate change has created substantial difficulties in the areas of sustainability, development, and environmental conservation due to the widespread dependence on fossil fuels for energy production. Nevertheless, the promotion of renewable energy programs has the potential to significantly expedite endeavors aimed at tackling climate change. Thus, it is essential to conduct a thorough analysis that considers the financial aspects to fully understand the main hurdles that are preventing the advancement of renewable energy initiatives. Italy is a leading country in the worldwide deployment of renewable energy. The objective of this research is to assess the impact of financial growth, economic progress, and energy expenses on Italy’s adoption of renewable energy sources. By employing the Auto-Regressive Distributed Lag (ARDL) technique, we analyzed annual data spanning from 1990 to 2022. Findings revealed that a 1% increase in financial and economic development would boost renewable energy consumption in the long run by 0.29% and 0.48%, respectively. Instead, a 1% increase in energy prices might reduce consumption of renewable energy by 0.05% in the long run. This study’s primary significance lies in furnishing actionable strategies for Italy to augment green finance for renewable energy, fostering sustained social and economic progress. Moreover, the analytical insights gleaned from this research offer valuable insights for energy-importing nations worldwide.

Keywords


Cite This Article

APA Style
Raihan, A., Ridwan, M., Salehi, M., Zimon, G. (2025). Influences of financial development and energy price on renewable energy: an italian case. Energy Engineering, 122(2), 493–514. https://doi.org/10.32604/ee.2025.059016
Vancouver Style
Raihan A, Ridwan M, Salehi M, Zimon G. Influences of financial development and energy price on renewable energy: an italian case. Energ Eng. 2025;122(2):493–514. https://doi.org/10.32604/ee.2025.059016
IEEE Style
A. Raihan, M. Ridwan, M. Salehi, and G. Zimon, “Influences of Financial Development and Energy Price on Renewable Energy: An Italian Case,” Energ. Eng., vol. 122, no. 2, pp. 493–514, 2025. https://doi.org/10.32604/ee.2025.059016



cc Copyright © 2025 The Author(s). Published by Tech Science Press.
This work is licensed under a Creative Commons Attribution 4.0 International License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
  • 1010

    View

  • 109

    Download

  • 0

    Like

Share Link