Role of public and private investments for green economic recovery in the post-COVID-19

Figures & data

Table 1. System of variables.

Acronyms	Variable
Puinv	Public Investment
Pinv	Private investment
STax	The stringency of the diesel tax
EFP	Expansionary fiscal policy
CFP	Contractionary fiscal policy
GDP	Gross domestic product
R	Interest rate
EMP	Expansionary monetary policy
CMP	Expansionary monetary policy

Source: ‘Authors’ compilation.

Table 2. Results of whole sample.

	(1)	(2)	(3)	(4)	(5)	(6)
Pinv	0.19***	0.21***	0.20***	0.23***	0.24***	0.25***
	−0.03	−0.02	−0.02	−0.09	−0.04	−0.03
STax	0.13***	0.15***	0.16***	0.23***	0.26***	0.06
	−0.04	−0.03	−0.04	−0.07	−0.08	−0.06
EFP	0.02	−0.03	−0.01	−0.11	−0.08	0.07
	−0.07	−0.05	−0.05	−0.11	−0.12	−0.1
CFP	0.21***	0.05	0.14***	0.11	0.03	0.11***
	−0.11	−0.09	−0.07	−0.08	−0.06	−0.07
GDP	0.03	0.02	0.02	0.01	0.04	0.05
	−0.06	−0.07	−0.04	−0.05	−0.06	−0.07
R	0.13***	0.13***	0.15***	0.07	0.09	−0.01
	−0.03	−0.04	−0.05	−0.06	−0.07	−0.03
EMP	0.01	0.01	0.05	0.06	−0.02	0.05
	−0.05	−0.07	−0.06	−0.11	−0.09	−0.08
CMP	0.09*	0.08*	0.13*	0.13*	0.14*	0.15***
	−0.04	−0.07	−0.08	−0.07	−0.05	−0.06
C	6.19***	7.32***	7.28***	5.34***	1.83***	0.13***
	−0.19	−0.28	−0.25	−0.55	−0.17	−0.05
Observations	192	182	172	170	148	148
Durbin-Watson	1.42	1.83	1.61	1.77	–	–
Prob (J-statistic)	–	–	0.16	0.33	0.42	0.17

* p < 0.10. ^**p < 0.05. ^***p < 0.01. Standard error in parentheses; Source: ‘Authors’ calculation.

Table 3. Private investment in solar energy sources.

	(1)	(2)
Pinv	0.43***
	−0.05
STax		0.11***
		−0.04
EFP	0.37***	0.37***
	−0.07	−0.04
CFP	0.17*	0.14**
	−0.07	−0.05
GDP	0.37***	0.05
	−0.07	−0.09
r	0.05*	0.03**
	−0.06	−0.07
EMP	0.31***	0.19***
	−0.04	−0.04
CMP	0.01	0.07
	−0.05	−0.07
C	4.45***	4.77***
	−0.17	−0.31
Observations	193	173
Durbin-Watson	1.76	1.74
Prob (J-statistic)	–	–

* p < 0.10. ^**p < 0.05. ^***p < 0.01. Standard error in parentheses; Source: Authors’ calculation.

Table 4. Results of private investment in wind energy resources.

	Model 1	Model 2
Pinv	1.13***
	−0.03
STax		0.11***
		−0.03
EFP	0.33***	0.37***
	−0.04	−0.03
CFP	0.13*	0.13**
	−0.07	−0.05
GDP	0.31***	0.05
	−0.11	−0.05
r	0.04*	0.03**
	−0.06	−0.07
EMP	0.13***	0.13***
	−0.03	−0.04
CMP	0.01	0.07
	−0.05	−0.07
C	3.45***	4.77***
	−0.17	−0.31
Observations	153	173
Durbin-Watson	1.33	1.73
Prob (J-statistic)	0.31	0.37

Source: Authors' calculation ^*p < 0.10. ^**p < 0.05. ^***p < 0.01. Standard error in parentheses.

Table 5. Impact of feed in tariff on renewable energy sources.

	(1)	(2)	(3)	(4)	(5)	(6)
Feed-in tariff	1.28***	1.12***	1.22***	1.28***	1.22***	1.18***
	−0.06	−0.06	−0.08	−0.08	−0.06	−0.02
STax	0.18***	0.17***	0.10***	0.12***	0.11***	0.04***
	−0.06	−0.06	−0.06	−0.07	−0.02	−0.02
EFP	0.22***		0.21***	0.28***	0.24***	0.18
	−0.06		−0.04	−0.07	−0.06	−0.01
CFP	0.11*			0.18*	0.18**	0.12
	−0.08			−0.06	−0.08	−0.02
GDP	0.18***				0.16***	0.11***
	−0.12				−0.04	−0.02
r	0.04*				0.08**	0.08
	−0.06				0.06	−0.06
EMP	0.12***					−0.01
	−0.12					−0.04
CMP	0.01
	−0.07
C	2.27***	4.87***	6.66***	6.14***	–	–
	−0.18	−0.21	−0.22	−0.26	–	–
Observations	182	182	172	170	148	148
Durbin-Watson	1.87	1.82	1.86	1.77	–	–
Prob (J-statistic)	–	–	0.26	0.28	0.28	0.18

Source: Authors' calculation ^*p < 0.10. ^**p < 0.05. ^***p < 0.01. Standard error in parentheses.

Table 6. Fixed effects analysis.

Test	Test	Significance
Cross-section F	28.43	0
Cross-section $x^2$	253.44	0
Breusch-Pagan LM	146.54	0.06
Pesaran scaled LM	1.59	0.01
Pesaran CD	3.20	0
Likelihood ratio	139.43	0
Likelihood ratio	2.94	0.21

Source: Authors' calculation.

Table 7. Redundant fixed effects.

	(1)	(2)	(3)	(4)	(5)	(6)
Pinv	0.17***
	−0.12
STax		0.06***
		−0.02
EFP			0.09***
			−0.13
CFP				−0.05***
				−0.11
GDP					0.05***
					−0.09
R						0.019***
						−0.03
EMP
CMP
C	6.35***	5.89***	4.99***	5.54***	–	–
	−0.30	−0.24	−0.32	−0.39	–	–
Observations	172	174	214	203	214	178
Durbin-Watson	1.42	1.31	1.46	1.26	–	–
Prob (J-statistic)	–	–	0.27	0.24	0.36	0.21

* p < 0.10. ^**p < 0.05. ^***p < 0.01. Standard error in parentheses; Source: Authors' calculation.

Table 8. Impact of public intervention on renewable energy resources.

	Model 1	Model 2	Model 3	Model 4	Model 5	Model 6
Pui	0.33***	0.31***	0.33***	0.19***	0.32***	0.33***
	−0.02	−0.07	−0.07	−0.09	−0.05	−0.02
STax	0.11***	0.11***	0.10***	0.13***	0.09***
	−0.05	−0.03	−0.03	−0.07	−0.02
EFP	0.13***	0.37***	0.17***	0.35***
	−0.05	−0.03	−0.02	−0.07
CFP	0.13*	0.13**	0.17***
	−0.07	−0.05	−0.05
GDP	0.19***	0.05	0.12***
	−0.07	−0.09	−0.07
r	0.12*	0.03**
	−0.03	−0.07
EMP	0.13***
	−0.02
CMP	0.16***
	−0.01
C	3.37***	3.37***	3.11***	2.32***	–	–
	−0.17	−0.31	−0.33	−0.35	–	–
Observations	193	173	173	170	127	127
Durbin-Watson	1.33	1.77	1.57	1.56	–	–
Prob (J-statistic)	–	–	0.12	0.17	0.19	0.15

Source: Authors' calculation ^*p < 0.10. ^**p < 0.05. ^***p < 0.01. Standard error in parentheses.

Table 9. Sensitivity test analysis.

	(1)	(2)	(3)	(4)	(5)	(6)
Pinv	1.11***	1.21***	0.61***	0.63***	0.63***	0.65***
	−0.15	−0.12	−0.12	−0.1	−0.15	−0.13
STax	0.41***	0.46***	0.41***	0.63	0.41	0.61
	−0.02	−0.03	−0.03	−0.04	−0.05	−0.03
EFP	0.13***	0	0	0		0.21
	−0.05	−0.03	−0.05	−0.04		−0.02
CFP	0.02		−0.01	−0.11		0.11
	−0.04		−0.05	−0.11		−0.03
GDP	0.21***			0.11		0.11***
	−0.11			−0.06		−0.04
r	0.03
	−0.06
EMP	0.13***
	−0.03
CMP	0.01
	−0.05
C	0.92***	1.51***	1.33***	2.23***	–	–
	−0.19	−0.26	−0.25	−0.55	–	–
Observations	166	164	166	142	156	156
Durbin-Watson	1.34	1.65	1.32	1.65	–	–
Prob (J-statistic)	–	–	0.16	0.33	0.52	0.14

Source: Authors' calculation ^*p < 0.10. ^**p < 0.05. ^***p < 0.01. Standard error in parentheses.