Energy Economics Letters

Political and economic uncertainty as barriers to renewable energy investment: A comparative panel ARDL analysis of advanced and emerging economies

2026-01-06T01:21:04-06:00

This paper aims to investigate the extent to which political and economic uncertainty hinder renewable energy investment and compromise climate change mitigation objectives, specifically comparing the differential effects across advanced and emerging economies. We use a Panel Autoregressive Distributed Lag (P-ARDL) approach to analyze data from two distinct country panels, consisting of monthly frequency data between 2000 and 2023: 15 advanced economies and 20 emerging and developing economies. Empirical findings indicate a negative long-run relationship between the uncertainty measures and the share of renewable energy in total energy consumption in both panels at a statistical significance level. Most importantly, this dissuasive effect is significantly stronger in the emerging and developing economies, where the renewable energy share decreases by 0.062% for every 1% rise in economic policy uncertainty, while in advanced economies it decreases by 0.045%. The error correction model shows a moderate adjustment speed, which suggests that the adverse effects of uncertainty are persistent in both groups, therefore confirming the theoretical predictions of real options theory. The study identifies institutional quality, economic development, and investment climate as factors moderating the uncertainty effect. Policy implications point to an urgent need for stable and predictable regulatory frameworks, strong institutions, and targeted de-risking mechanisms that catalyze the global energy transition toward ambitious targets, especially in emerging economies.

Sectoral analysis of natural gas demand dynamics in Nigeria – An ARIMA approach

2026-01-06T04:24:07-06:00

The study estimated Nigeria's natural gas demand across the industry, residential, and non-energy sectors, using the Box-Jenkins ARIMA model. The study collated annual historical data on natural gas demand by these sectors for the period from 1988 through 2024. While gas demand by the industry and non-energy sectors was found to be influenced by their past demand, demand for gas by the residential sector was noted to be independent of its past demand. For the predictions, demand for gas by the residential sector was forecasted to sustain a consistent growth. Industry gas demand, which was found to be low, was forecasted to gradually recover from the low level over time, while the non-energy sector was forecasted to experience a continuous demand reduction for five consecutive years. It is necessary to make investments towards expanding the gas distribution network to support the consistent demand growth in the residential sector. Policies aimed at industrial recovery should be implemented to boost gas demand, and interventions to mitigate the decline in gas demand in the non-energy sector should be considered.

Renewable energy utilization and environmental sustainability: A study of small and medium enterprises in Kogi State

2026-01-11T04:00:03-06:00

This study aimed at renewable energy utilization and environmental sustainability. The study focused on how consumption of renewable energy, capacity, and electricity access affect environmental responsibility, carbon absorption, and pollution control in sustainable development. Survey research design was employed. The study targeted small and medium enterprises (SMEs). The population size was 12,517. The sample size of the study was 373. A multi-stage sampling technique was adopted so that the sample was selected in stages. The reliability of the instrument was established using Cronbach's alpha test. Descriptive and inferential statistical techniques were employed in the research to analyze the data collected. Linear regression analysis was used to test hypotheses. Findings revealed that consumption of renewable energy significantly affects carbon sequestration and that renewable energy capacity has a significant effect on pollution control among SMEs. The study concluded that utilization of renewable energy can improve environmental sustainability among SMEs. The study recommended that SMEs need to place high priority on the uptake and utilization of renewable energy sources such as solar, wind, and biomass to enhance their environmental sustainability. It also recommended that SMEs should increase their investment in renewable energy infrastructure and capacity development to strengthen their ability to control pollution and manage waste efficiently.

Impact of a sudden fuel price hike on urban motorbike usage: Evidence from Barishal, Bangladesh

2026-03-01T14:04:48-06:00

Fuel price volatility has long been an important topic for understanding how consumers react to immediate price shocks. The sharp increase in petrol prices of approximately 52 percent in 2022 was a major economic concern for analyzing the consumption behavior of urban commuters in developing countries like Bangladesh. This study examines how motorbike users responded to the sudden fuel price increase in terms of short-run fuel consumption. Data were collected from 220 respondents through face-to-face surveys at petrol stations, parking areas, and major traffic junctions across Barishal city. Respondents were randomly selected motorbike owners who use their bikes for personal purposes only. Random effects regression results indicate a statistically significant decline in monthly fuel consumption by 2.5 liters, along with a substantial reduction in average monthly riding distance of 104.3 kilometers following the price shock. Additionally, the estimated arc price elasticity of fuel consumption is –0.213, with larger reductions observed among unemployed and middle-income riders. Demographic characteristics such as age, income, occupation, and riding experience are also included to examine their influence on fuel consumption. Overall, these findings inform energy policymakers on targeted fuel pricing or subsidy reforms affecting urban commuters.

Transmission mechanisms of oil price shock to inflation in Nigeria

2026-03-01T19:35:58-06:00

This study focused on analyzing the transmission mechanism of oil price shocks to inflation in Nigeria, using data from 1990 to 2024. It employed both the dynamic ordinary least squares (DOLS) estimation and the vector autoregression (VAR) model. The findings from the DOLS confirmed that oil price shocks directly influenced inflation in Nigeria. Additionally, the results indicated that exchange rate volatility, money supply, and fiscal balance also directly affected inflation. The impulse response function from the VAR model showed that inflation responded positively to shocks in oil prices. Furthermore, fiscal balance and money supply responded positively to oil price shocks, although the effects were decomposed over the long term. It was observed that inflation responded positively to shocks in broad money supply and fiscal balance during the study period. These findings reflect the presence of petro-monetary and petro-fiscal transmission mechanisms of oil price shocks to inflation in Nigeria. The study concludes that oil price shocks impact both the monetary and fiscal sectors of the economy, making them essential considerations in monetary and fiscal policy formulation aimed at addressing inflation in Nigeria.