The impact of renewable energy consumption on economic stability: The case of RECAI countries

This study aims to investigate the impact of renewable energy consumption on economic stability. In this vein, 27-year-data from a total of 35 countries existing in the "Renewable Energy Country Attractiveness Index (RECAI)" belonging to the period 1990-2016 is used. While 19 of these countries are grouped as developed countries, the resting 16 are handled as developing countries. The variables used in the econometric model are economic stability index, renewable energy consumption, non-renewable energy consumption, and political stability index. While forming the economic stability index, the method of "the International Country Risk Guide (ICRG)" is used. According to the analysis results, it has been determined that the consumption of renewable energy has a positive impact on economic stability in the great majority of the developed and developing country groups. The impact of non-renewable energy consumption on economic stability shows a divergence between the developed and developing country groups.