Studying The Impact of Investment in Renewable Energy Infrastructure On Solar Energy Consumption, taking into Account the Role of Human Capital, Financial Development, And Energy Policy in The Arab Gulf Countries Using The PSTR Method
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Abstract
The rapid growth of renewable energy, particularly solar energy, as a clean, sustainable, and affordable source of energy, particularly in developing countries and the Gulf region, which enjoy high solar radiation and sufficient financial resources, has provided an important opportunity to reduce dependence on fossil fuels and move towards a low-carbon economy. This study uses a smooth transition regression (PSTR) model to examine the factors influencing solar energy consumption in the Gulf Cooperation Council (GCC) countries. The results show that the minimum investment threshold in renewable energy infrastructure is approximately (4.25%), and that the impact of investment on renewable energy consumption beyond this level becomes positive and significant.
Improved energy policies, human capital development, the impact of climate change, and financial developments are all factors that significantly increase renewable energy consumption. The findings underscore the importance of initial investment commitment and coherent policy frameworks to accelerate the adoption of clean technologies in the region. Ultimately, this study demonstrates that integrating economic, social, and environmental factors into energy strategy formulation can pave the way for the transition to sustainable development and achieving carbon dioxide reduction goals.
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