The impact of energy diversity on financial development and economic growth in the context of renewable, non-renewable, and nuclear energy resources

Energy has always been an essential part of human life. In recent years, the availability of energy resources is vital for a country's economic growth and financial development. This thesis aims to investigate the effects of different energy resources on financial development and economic growth. The study of energy diversity is significant to find out the most efficient resources. With this understanding, this thesis dissertation will help policymakers to choose an efficient energy resource or resources suitable for their financial development and economic growth. The framework of econometric analysis in this thesis is based on two different models. The first model investigates the impact of renewable, non-renewable, and nuclear energy resources on the economic growth of 28 countries. The second model aims to examine the effects of the selected energy resources on financial development. Those countries were selected as a sample group for the analysis, which has nuclear reactors. A panel data set was created to achieve these goals, containing annual data from 2001 till 2019, making a total of 532 observations. The models are estimated by the fixedeffects model and Driscoll-Kraay estimator. The results of the first analyzed model show that oil consumption, natural gas, and renewable energy consumption variables are affecting the economic growth significantly positive. Likewise, the second model's empirical results show that natural gas and renewable energy resources positively and significantly impact financial development. Our findings imply that investing in renewable energy will contribute to a country's financial development and economic growth. Keywords: Energy Diversity, Financial Development, Renewable Energy, Nuclear Energy, Fixed Effects, Discroll-Kraay Estimator.