Journal Articles

2024

Debt as catalyst: Empowering renewable energy in developing countries  (Read the article )

Energy Policy (ABDC: A), Volume 194, November 2024, 114336 

Co-authored with Manisha Jain

Abstract: Financing renewable energy (RE) is essential for transitioning to green energy. Debt finance plays a significant role in shifting from conventional to green energy, with the global percentage of debt financing increasing from 23% in 2013 to 56% in 2020. Previous studies have examined the impact of green finance on RE. This study examines the impact of debt financing on RE capacity in 12 developing countries from 2000 to 2020. Green finance covers various financial tools for environmental sustainability. Therefore, a distinction between green and debt financing impact on RE is essential. The study uncovers a U-shaped relationship between debt financing and RE, suggesting that while initial debt financing may hinder RE deployment beyond a certain level, debt financing promotes RE deployment. The study also draws attention to the influence of financial market conditions, indicating that developing countries can effectively utilize debt finance in favorable financial markets to negate the initial negative impact on RE deployment. These findings offer financial strategists and policymakers valuable insights to support debt financing and increase RE deployment.

2025

Understanding the role of greenfield and mergers & acquisitions foreign direct investments in renewable energy expansion in developing countries (Read the article)

Energy Economics (ABDC: A*), Volume 145, May 2025, 108450 

Abstract: Foreign direct investment (FDI) plays a pivotal role in the transition to renewable energy (RE) and has garnered significant attention globally. While much research exists on the impact of FDI on RE, studies on components of FDI like greenfield (GF) FDI and mergers and acquisitions (M&A) FDI are limited. Existing studies provide conflicting results, necessitating a thorough analysis to determine the true impact of GF FDI and M&A FDI on RE capacity. This study aims to bridge this gap by focusing on 41 developing countries from 2003 to 2022. Data reveals a non-linear relationship between GF FDI and RE capacity, prompting the introduction of a non-linear term of GF FDI to examine its impact on RE capacity. The study employs robust statistical methods, including IV-GMM, quantile instrumental variable regression, machine learning and neural networking. Results show a U-shaped relationship between GF FDI and RE capacity, while M&A FDI positively impacts RE capacity, making it an attractive option for boosting RE deployment. Public debt and political stability are also crucial for enhancing RE capacity. Policy suggestions emphasize component-wise FDI strategies, prioritizing M&A FDI early in the energy transition, easing M&A processes, and supporting GF FDI for long-term benefits.

Understanding the Dynamics of Public Debt on Renewable Energy Investment in Developing Countries (Read the article ) 

Co-authored with Manisha Jain

Energy Economics (ABDC: A*) ,  Volume 147, June 2025, 108500 

Abstract: In developing economies, rapid growth is closely tied to public debt (PD), which can impact investment in the energy sector, including renewable energy (RE). Previous studies have examined the impact of PD on RE consumption, but the channel needs to be clarified. The relationship between PD and RE consumption can be influenced by the extent of public investment in RE, which acts as the channel connecting PD to RE consumption.  However, the direct impact of PD on public investment in RE remains unexplored. Therefore, this study examines the impact of PD on public investment in RE in 71 developing countries from 2000 to 2020. Using Driscoll-Kraay standard errors, IV-GMM, and quantile regression, this study uncovers an inverse U-shaped relationship between PD and public investment in RE. PD supports public investment in RE up to a certain level, but higher levels of PD hinder further public investment in RE. The study also explored the moderating role of financial institutions and markets on public investment in RE at different levels of PD. It finds that countries can effectively use PD in favorable financial environments to counteract the negative impact on public investment in RE. The results emphasize the need for balanced PD management, robust economic conditions, and solid financial institutions to promote sustainable public investment in RE in developing countries. 

Does public debt deter donor financing for renewable energy? Evidence from low- and middle-income countries (Read the article)

Finance Research Letters (ABDC A), Volume 85, Part A, November 2025, 107854 

Abstract: Donor funding for renewable energy plays a crucial role in supporting low- and middle-income countries’ energy transitions. This study analyzes data from 34 countries over 2000–2020 to examine how public debt and governance affect donor funding flows. Using fixed effects and dynamic system GMM methods, we find that higher public debt significantly reduces donor support, while governance shows mixed effects, with corruption control being somewhat important. The results also show a strong positive effect of previous donor funding, indicating persistence over time and reflecting ongoing commitments. These findings suggest that governments should focus on effective debt management and strengthening governance to attract more donor financing and support sustainable energy development.