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The Russian Federation's Renewable Energy Development Determinants: Evidence from Empirical Research
The Russian Federation is one of the world’s largest exporters of fossil-based energy sources such as oil, natural gas, and coal. Approximately 90% of the energy production in the Russian Federation consists of oil, natural gas, and coal. Renewable energy (RE) in the Russian Federation mainly comprises hydroelectric energy. The aim of this paper is to identify the factors that influenced the growth of RE resources in Russian Federation between 1990 and 2020. Design/methodology/approach - The unit root tests ADF and PP, as well as Johansen cointegration and Granger causality approaches, were used. The study was conducted using Vector Error Correction Models for the years 1990–2020. Findings - The cointegration method's findings demonstrate that while a rise in non-RE sources has a negative impact on RE development, an increase in income, energy consumption, trade openness, and CO2 emissions has a favourable impact on RE expansion. The VECM Granger causality test also shows a unidirectional relationship between RE and non-RE sources, GDP, energy consumption, and CO2 emissions. Trade openness, on the other hand, has no causal association with RE. Practical implications - The Russian Federation must consider the practical implications of RE sources. However, there is a greater need for the Russian Federation to frame sound energy policies for RE development. Originality/value - The study aims to fill a gap in the literature on Russian RE development. Furthermore, the results of the methodological analysis can be used to guide policymakers in the field of RE development. The paper is also more policy-relevant, and it is quite useful in the context of sustainable energy development. Keywords: Renewable Energy Consumption, Substitute And Security Factors, Economic And Environmental Factors, VECM Model.