AUTHOR=Ali Shahid , Yan Qingyou , Irfan Muhammad , Ameer Waqar , Atchike Desire Wade , Acevedo-Duque Ángel 

TITLE=Green Investment for Sustainable Business Development: The Influence of Policy Instruments on Solar Technology Adoption

JOURNAL=Frontiers in Energy Research

VOLUME=Volume 10 - 2022

YEAR=2022

URL=https://www.frontiersin.org/journals/energy-research/articles/10.3389/fenrg.2022.874824

DOI=10.3389/fenrg.2022.874824

ISSN=2296-598X

ABSTRACT=Green investment in sustainable energy can overcome the dependence on fossil fuels energy over worldwide. Renewable energy policies have become the key issue in both developing and developed countries; there is a need to focus on energy-related policies by regulatory authorities of these countries. The current study critically analyses the performance of existing renewable energy policy instruments to attract foreign direct investment for solar energy development in Pakistan. We evaluate the moderating role of good governance and financial support between the nexus of renewable energy policy instruments and green foreign direct investment for the sustainable development of solar energy in the country. The present study used non-probability (purposive) sampling to collect data from 43 respondents (private investors, government officials, energy experts, and policymakers) by conveying an energy-policy-related questionnaires survey. The response rate was 82.69%. The study has used partial least squares structural equation modeling (PLS-SEM) to assess formulated hypotheses. Results indicate that the Feed-in Tariffs is the most effective policy instrument to attract foreign direct investment in the country's solar energy sector. Fiscal measures positively impact the green foreign direct investment for solar energy. The results further reveal that good governance and financial support positively and significantly moderate the nexus of RE policy instruments and green foreign direct investment for solar energy. Main barriers have been identified over the whole solar energy spectrum. The study findings provide essential policy recommendations and considerable manual for energy-related regulators, policymakers, and government institutions to adopt advanced renewable energy policy instruments to attract foreign direct investment in Pakistan.