Financial Development and Deployment of Renewable Energy Technologies

55 Pages Posted: 25 Nov 2015

See all articles by Jeayoon Kim

Jeayoon Kim

KAIST College of Business

Kwangwoo Park

KAIST (Korea Advanced Institute of Science and Technology) - College of Business

Date Written: October 1, 2015

Abstract

Using a unique panel dataset of 30 countries for the 2000-2013 period, we examine whether financial market development promotes the deployment of renewable energy on a global scale. In particular, we conjecture that countries with well-developed financial markets experience growth in the renewable energy sector due to easier access to external financing. We find that renewable sectors that are relatively more dependent on debt and equity financing grow disproportionately faster in countries with developed financial markets. Our results support the view that financial development leads to a reduction in CO2 emissions by addressing the role of financial markets in deploying renewable energy.

Keywords: Financial development, External financing, Deployment of renewable energy technologies

JEL Classification: G15, O16, Q43

Suggested Citation

Kim, Jeayoon and Park, Kwangwoo, Financial Development and Deployment of Renewable Energy Technologies (October 1, 2015). KAIST College of Business Working Paper Series No. 2015-023. Available at SSRN: https://ssrn.com/abstract=2695260 or http://dx.doi.org/10.2139/ssrn.2695260

Jeayoon Kim

KAIST College of Business ( email )

85 Hoegiro, Dongdaemoon-gu
Seoul 02455
Korea, Republic of (South Korea)

Kwangwoo Park (Contact Author)

KAIST (Korea Advanced Institute of Science and Technology) - College of Business ( email )

85 Hoegiro
Seoul 02455
Korea, Republic of (South Korea)
82-2-958-3540 (Phone)
82-2-958-3604 (Fax)

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