The role of institutional quality in the transition to renewable energy consumption in the case of an oil-rich country

This study examines the impact of institutional quality (IQ), represented by factors such as the corruption perception index (CPI), income levels, CO2 emissions, and trade openness on renewable energy consumption (REC) in Russia from 1996 to 2022. The canonical cointegrating regression technique was utilized for the empirical analysis. Findings indicated that institutional quality, as measured by the CPI, and income positively and significantly influence REC. Numerically, holding other factors constant, a 1% rise in, institutional quality, and income leads to a rise in REC by about 0.285%, and 0.486%, respectively, in the long run. In addition, we found that trade openness has a negative and statistically significant impact on REC, whereas CO2 emissions have no significant effect on REC. These results underscore the importance of implementing policies aimed at enhancing environmental sustainability and ensuring energy security.