Do Depth, Accessibility, and Efficiency of Financial Institutions Matter for Renewable Energy Development in Azerbaijan?

Abstract

The promotion of renewable energies is a decisive factor for the sustainable growth of countries' economies and the development of their environment. The installation and use of renewable energy is costly and therefore financial resources are needed to invest in renewable energy. Accordingly, this study analyzes the impact of depth, accessibility and efficiency of financial institutions (FI) on renewable energy consumption (REC) for Azerbaijan from 1992 through 2021. So, the study uses time series estimators. The results show that the depth and efficiency development of FI increases REC, while financial accessibility is not effective on renewable energy. These findings suggest that Azerbaijani policymakers should deal with to increase the depth and efficiency of FI to promote REC.