Author
ERGUN, Tolga
Publication Place
University of Afyon Kocatepe -
University of Afyon Kocatepe
Subject
Energy consumption
Type
Book
Language
ara,eng
Digital
Yes
Manuscript
No
Library
Leitir Library
Library Asset ID
ISSN: 2757-8399, EISSN: 2757-8399, DOI: 10.52637/kiid.1294494
Record ID
cdi_doaj_primary_oai_doaj_org_article_4833e54eb9234375a5ce8b6323e0b696
Library Location
DOAJ Directory of Open Access Journals (WRLC)
Notes
Energy use is needed for individuals to sustain their lives and for businesses to produce goods and services. Energy is generally considered in two categories: renewable and exhaustible energy. Today, the use of non-renewable energy, which is a limited resource such as oil and gas, continues to be widely used in many areas. Therefore, considering the high financial budget in the dissemination of alternative energy sources and in ensuring that countries use their resources efficiently, the financial sector plays an important role. With an effective financial sector, progress can be made in many areas such as providing loans at lower rates, economical use of resources and energy, managing risks and using environmentally friendly techniques in the production processes of businesses. Due to the goal of reducing energy consumption and the need for high capital investment in the use of alternative energy sources, more capital usage is seen in renewable energy sources than in traditional energy sources. Renewable energy can play an important role in reducing a country's dependence on imported energy products such as oil and gas. Therefore, a strong financial structure is needed to facilitate debt and equity financing in the development and dissemination of renewable energy investment projects. In this context, the participation finance sector, which constitutes an important component of the financial sector, is also giving increasing importance to green investment financing within the framework of climate finance, especially in areas such as renewable energy, climate-based agriculture, urbanization, water and transportation. According to the Islamic Finance Development Report, global participation finance assets will amount to 3.9 trillion dollars in 2021 and are estimated to increase to 5.9 trillion dollars in 2026. Within the framework of this information, the study aims to reveal the interaction of participation finance development with energy consumption and renewable energy on the samples of the United Arab Emirates, Indonesia, Kuwait, Saudi Arabia and Turkey, which are leading in the field of participation finance and whose analysis data can be accessed for empirical studies. While determining the analyzed countries, the Islamic Financial Services Industry Stability Report published by the Islamic Financial Services Board was taken as reference. In line with the main purpose of the study, three panel data models were established. While energy consumption, carbon emissions and renewable energy use were used as dependent variables in the models, participation finance development and gross domestic product per capita were analyzed as independent variables. Access to participation finance, total participation finance assets and liquid assets in the analyzed countries were discussed as indicators of participation finance development. The data for the variables in the empirical study consist of annual data in the 2013-2019 period. Within the scope of panel data analysis, first the assumptions were tested and then the Breush-Pagan test was performed to estimate the pooled model. Following this test, the Hausman test was applied to determine whether the model could not be pooled and to choose between fixed effects and random effects models. As a result of the panel data analysis conducted for the research models, a positive relationship was detected between energy consumption and participation finance assets, while a negative relationship was found between access to participation finance and energy consumption. On the other hand, while a positive relationship was determined between the use of renewable energy resources and participation finance assets, a statistically negative relationship was revealed between access to participation finance and renewable energy. In other words, participation finance assets and access to participation finance statistically affect energy consumption in the analyzed countries. As a result, the findings indicate that participation financing sources are more easily accessible for environmental investment areas. In addition, the findings point to the need to develop policies that give more emphasis to alternative energy sources that increase energy efficiency and reduce energy consumption through participation financing. Individuals require energy consumption to sustain their lives, while businesses need it to produce goods and services. Energy is generally categorized as either renewable or non-renewable. Currently, the usage of non-renewable energy sources such as oil and gas, which are limited and non-renewable, is still widely prevalent in many areas. Therefore, the financial sector plays a crucial role in the widespread adoption of alternative energy sources, considering the high financial budget involved and the efficient use of the resources that countries possess. With an efficient financial sector, the Islamic Financial Services Industry Stability Report published by the Services Board is taken as reference. Toward the main objective of the study, three panel data models have been established. While energy consumption, carbon emission and renewable energy usage are used as dependent variables in the models, participation finance development can contribute to progress in various areas such as credit provision, efficient use of resources and energy, risk management, and the use of eco-friendly techniques in the production processes of businesses. Due to the need for high capital investment in reducing energy consumption and using alternative energy sources, renewable energy sources are seen as more capital-intensive than traditional energy sources. Renewable energy can play a significant role in reducing a country's dependence on imported energy products such as oil and gas. Therefore, there is a need for a strong financial structure to facilitate debt and equity financing for the development and widespread adoption of renewable energy investment projects. In this context, the participation finance sector, which is an important component of the financial sector, is increasingly giving more importance to green investment financing, particularly in areas such as renewable energy, climate-based agriculture, urbanization, water, and transportation, under the framework of climate finance. In line with the Islamic Finance Development Report, global participation finance assets amounted to $3.9 trillion in 2021, and it is estimated to rise to $5.9 trillion in 2026. In this context, the study aims to examine the interaction between participation finance development, energy consumption, and renewable energy in the United Arab Emirates, Indonesia, Kuwait, Saudi Arabia, and Turkey, which are leading countries in the field of participation finance and have accessible empirical data for analysis purposes. The countries analyzed were selected based on Islamic finance, liquid assets and per capita gross domestic product as independent variables. Access to Islamic finance and total Islamic finance assets in the analyzed countries were considered as indicators of Islamic finance development. The data for the variables in the empirical study were obtained from annual data for the 2013-2019 period. Assumptions were tested first in the panel data analysis, followed by the Breusch-Pagan test for estimating the pooled model. After this test, the Hausman test was applied to choose between the fixed effects and random effects models, and it has been found that the model cannot be pooled. As a result of the panel data analysis conducted for the research models, a positive relationship was found between energy consumption and participation finance assets, while a negative relationship was detected between participation finance access and energy consumption. On the other hand, a positive relationship was found between the use of renewable energy sources and participation finance assets, while a statistically negative relationship was identified between participation finance accessibility and renewable energy. In other words, in the analyzed countries, participation finance assets and accessibility statistically effect energy consumption. As a result, the findings suggest that participation finance sources are more easily accessible for environmental investment areas. It also points to the need to develop policies that give more weight to alternative energy sources that increase energy efficiency and reduce energy consumption through participation financing.
Detaylı Başlık
Katılım Finans Gelişimi ile Enerji Tüketimi-Yenilenebilir Enerji Etkileşimi: Seçilmiş Ülkelerden Kanıtlar
