Does ease of doing business promote renewable energy development? Evidence from 162 economies

Abstract

Clean energy development is a dual necessity for environmental security and sustainable economic development. Based on cross-country panel data from 162 countries and regions, the impact and heterogeneity of ease of doing business on renewable energy development is explored empirically. It is found that improved ease of doing business significantly contributes to the development of renewable energy, and the promotion effect is mainly found in countries with energy autarky countries and emerging market economies. The mechanism analysis shows that ease of doing business promotes the development of renewable energy by enhancing macroeconomic development. Further analysis reveals that the marginal effect of ease of doing business is magnified by the increase in carbon emissions. The findings in this paper provides evidence of market economy incentives for clean energy development.