Poojha Chaturvedi Shharma, Rohit Bansal, Aulia Luqman Aziz, Arfendo Propheto
This study evaluates the impact of renewable energy investments in India, focusing on three key areas: energy production, carbon emissions reduction, and job creation. By addressing these objectives, the research aims to provide targeted insights that inform policy decisions and optimize investment strategies in the renewable energy sector. This study utilizes panel data from 28 Indian states, integrating a Theory of Change framework with fixed effects regression models to assess both direct and moderated effects of renewable energy investments. Key variables include investment levels, electricity output, emissions intensity, and employment. Contextual moderators such as institutional capacity, regulatory quality, and technology type (solar vs. wind) are tested through interaction terms. The study highlights that renewable energy investments significantly increased energy production, but their effects on emissions reduction and job creation were conditional. Emissions outcomes improved only in states with strong institutional frameworks and complementary policies. Solar investments generated more employment than wind investments due to their higher labour intensity. Investment alone proved insufficient; its effectiveness depended on governance and policy alignment. Investors and policymakers must move beyond capital allocation to include regulatory coherence, institutional strengthening, and technology planning. Solar energy projects offer stronger job creation potential, suggesting a need for labour-sensitive investment strategies. Strategic, inclusive investments in renewable energy can improve air quality, reduce emissions, and generate employment opportunities. However, to deliver equitable and sustainable development, clean energy transitions must be embedded within a robust governance ecosystem that ensures social accountability and regional equity. This study reframes renewable energy investment as a systems-driven, context-sensitive process, showing that financial inputs alone are insufficient. Outcomes depend on institutional strength, regulatory coherence, and technology-specific factors. By integrating financial, institutional, regulatory, and technological dimensions with outcomes in generation, emissions, and employment, and leveraging a comprehensive state–year dataset, the study provides policy-relevant insights into the conditional effectiveness of renewable energy investments in India. © 2025 The Authors.
Accounting and Finance, Apeejay School of Management, India; Adjunct Faculty, Rockford College, Sydney, Australia; Faculty of Administrative Science, Universitas Brawijaya, Indonesia; Business Creation, BINUS Business School, Binus University, 15143, Indonesia
