Financial risk and renewable energy: exploring the influence of urbanization and natural resource rents across 112 countries
Abstract This study investigates the intricate relationship between financial risk and renewable energy consumption, incorporating the moderating effects of urbanization and natural resource rents. Utilizing a global panel dataset comprising 112 countries, the study applies econometric techniques, i...
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| Format: | Article |
| Language: | English |
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Springer Nature
2025-02-01
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| Series: | Humanities & Social Sciences Communications |
| Online Access: | https://doi.org/10.1057/s41599-025-04481-z |
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| author | Rongrong Li Qiang Wang Jiayi Sun |
| author_facet | Rongrong Li Qiang Wang Jiayi Sun |
| author_sort | Rongrong Li |
| collection | DOAJ |
| description | Abstract This study investigates the intricate relationship between financial risk and renewable energy consumption, incorporating the moderating effects of urbanization and natural resource rents. Utilizing a global panel dataset comprising 112 countries, the study applies econometric techniques, including fixed-effects models, moderation effect models, and panel threshold models, to investigate how varying levels of financial risk impact renewable energy consumption across diverse economic and environmental contexts. The results indicate that financial risk significantly suppresses renewable energy consumption, an effect that is further exacerbated by urbanization. At the same time, natural resource rents partially mitigate the adverse impact of financial risk. The moderating roles of both urbanization and natural resource rents jointly shape the overall effect of financial risk on renewable energy consumption. Additionally, the study identifies a single-threshold effect, where variations in urbanization and natural resource rents significantly influence the suppressive effect of financial risk. These findings emphasize the need for tailored financial strategies and urban planning policies to advance the global energy transition. The findings provide empirical support for policymakers seeking to balance economic stability with environmental sustainability, particularly in the context of emerging economies and regions heavily dependent on natural resources. |
| format | Article |
| id | doaj-art-c20d2bdd29ed4204b073278d0d1483e7 |
| institution | Kabale University |
| issn | 2662-9992 |
| language | English |
| publishDate | 2025-02-01 |
| publisher | Springer Nature |
| record_format | Article |
| series | Humanities & Social Sciences Communications |
| spelling | doaj-art-c20d2bdd29ed4204b073278d0d1483e72025-02-09T12:26:08ZengSpringer NatureHumanities & Social Sciences Communications2662-99922025-02-0112111310.1057/s41599-025-04481-zFinancial risk and renewable energy: exploring the influence of urbanization and natural resource rents across 112 countriesRongrong Li0Qiang Wang1Jiayi Sun2School of Economics and Management, China University of Petroleum (East China)School of Economics and Management, China University of Petroleum (East China)School of Economics and Management, China University of Petroleum (East China)Abstract This study investigates the intricate relationship between financial risk and renewable energy consumption, incorporating the moderating effects of urbanization and natural resource rents. Utilizing a global panel dataset comprising 112 countries, the study applies econometric techniques, including fixed-effects models, moderation effect models, and panel threshold models, to investigate how varying levels of financial risk impact renewable energy consumption across diverse economic and environmental contexts. The results indicate that financial risk significantly suppresses renewable energy consumption, an effect that is further exacerbated by urbanization. At the same time, natural resource rents partially mitigate the adverse impact of financial risk. The moderating roles of both urbanization and natural resource rents jointly shape the overall effect of financial risk on renewable energy consumption. Additionally, the study identifies a single-threshold effect, where variations in urbanization and natural resource rents significantly influence the suppressive effect of financial risk. These findings emphasize the need for tailored financial strategies and urban planning policies to advance the global energy transition. The findings provide empirical support for policymakers seeking to balance economic stability with environmental sustainability, particularly in the context of emerging economies and regions heavily dependent on natural resources.https://doi.org/10.1057/s41599-025-04481-z |
| spellingShingle | Rongrong Li Qiang Wang Jiayi Sun Financial risk and renewable energy: exploring the influence of urbanization and natural resource rents across 112 countries Humanities & Social Sciences Communications |
| title | Financial risk and renewable energy: exploring the influence of urbanization and natural resource rents across 112 countries |
| title_full | Financial risk and renewable energy: exploring the influence of urbanization and natural resource rents across 112 countries |
| title_fullStr | Financial risk and renewable energy: exploring the influence of urbanization and natural resource rents across 112 countries |
| title_full_unstemmed | Financial risk and renewable energy: exploring the influence of urbanization and natural resource rents across 112 countries |
| title_short | Financial risk and renewable energy: exploring the influence of urbanization and natural resource rents across 112 countries |
| title_sort | financial risk and renewable energy exploring the influence of urbanization and natural resource rents across 112 countries |
| url | https://doi.org/10.1057/s41599-025-04481-z |
| work_keys_str_mv | AT rongrongli financialriskandrenewableenergyexploringtheinfluenceofurbanizationandnaturalresourcerentsacross112countries AT qiangwang financialriskandrenewableenergyexploringtheinfluenceofurbanizationandnaturalresourcerentsacross112countries AT jiayisun financialriskandrenewableenergyexploringtheinfluenceofurbanizationandnaturalresourcerentsacross112countries |