Renewable energy production and sustainable development in OIC countries: the role of Islamic financial development and institutional quality

Murdipi, Rafiqa and Shaari, Norazuwana (2026) Renewable energy production and sustainable development in OIC countries: the role of Islamic financial development and institutional quality. In: Islamic Finance, Energy Transition and Sustainability. World Scientific, Singapore, pp. 93-131. ISBN 2972-3957

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Abstract

This study examines the linear and non-linear effects of Islamic financial development and institutional quality on the relationship between renewable energy and sustainable development in 18 Organisation of Islamic Cooperation's (OIC) member countries from 2013 to 2023. We identified several key findings: (1) We present evidence that the development of Islamic finance and the quality of institutions are critical in influencing the impact of renewable energy on sustainable growth. (2) The advancement of Islamic banking and sukūk fosters renewable energy development, facilitating growth. (3) The impact of renewable energy on growth is contingent upon the quality of institutions. Low regimes of institutional quality regarding political stability, government effectiveness, rule of law, and voice of accountability hurt the renewable energy-economic growth nexus. These findings hold substantial significance for policymakers in formulating strategies to enhance renewable energy development. The advancement of Islamic financing and the improvement of institutional quality are crucial in enhancing the advantages of renewable energy for sustainable development in OIC countries.

Item Type:	Book Chapter
Uncontrolled Keywords:	Sustainable development, energy production, institutional quality, renewable energy, Islamic financial development
Subjects:	H Social Sciences > HC Economic History and Conditions > HC79.E5 Environmental policy and economic development. Sustainable development. Sustainability. H Social Sciences > HG Finance H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Accounting
Depositing User:	Dr. - Murdipi
Date Deposited:	08 Jun 2026 09:22
Last Modified:	08 Jun 2026 09:22
Queue Number:	2026-05-Q3581
URI:	http://irep.iium.edu.my/id/eprint/129130

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