Political Economy of Clean Energy Transition: The Role of Political Risk and Economic Growth
Political Economy of Clean Energy Transition: The Role of Political Risk and Economic Growth

Summary/Abstract: This study analyzes the critical role of political risk and economic growth, natural resources, research and development, and technological innovation in the clean energy transition in BRICS economies from 1990–2022. Using panel econometric approaches, the study confirms the heterogeneity of slopes and cross-sectional dependence. Linear regression with the heteroscedastic panel-corrected standard error approach shows that economic expansion, political risk, and the quadratic R&D term significantly enhance the clean energy transition. However, natural resources, conventional technological innovation, and research and development expenditures are leading barriers. The robustness of these results is validated by a series of panel regressions. The study recommends rapid enhancement of the research and development budget, strengthening of governance and institutions, and investment in technological innovation to attain a sustainable transition towards clean energy sources.

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