HA639 : Green Energy Investments and Sustainable Finance in Iraq Supervisors:
Thesis > Central Library of Shahrood University > Industrial Engineering & Management > MSc > 2026
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Abstarct:
Iraq's economy has been structurally dependent on oil revenues for decades, a reliance that has heightened the country's vulnerability to external shocks. Despite Iraq's immense renewable energy potential, the share of green energy in its energy mix remains nearly zero. The gap between potential capacity and actual performance is rooted in weak financial and institutional frxameworks. The main objective of this study is to investigate the role of sustainable finance in facilitating and strengthening green energy investments in Iraq. This research is applied in purpose and descxriptive-correlational in method, employing a quantitative approach baxsed on econometric models. The theoretical frxamework is built upon three theories: financial intermediation theory, capital asset pricing theory, and institutional economics. Annual time series data for a 15-year period (2009-2024) were collected and analyzed using the Autoregressive Distributed Lag (ARDL) approach within four separate models. Due to severe data limitations in Iraq and the unavailability of continuous real time-series data for all research variables, the quantitative analyses in this study are baxsed on simulated data, aiming at proof of concept for the proposed methodological frxamework rather than empirical confirmation of the hypotheses in the real Iraqi economy. Within this simulation frxamework, the observed patterns were consistent with theoretical expectations: green financing instruments and tax incentives showed positive relationships with green energy investment; fiscal policy transparency aligned with enhanced capital attraction; green energy investment exhibited patterns consistent with economic diversification; and government financial guarantees demonstrated behavior compatible with renewable energy project success in the simulated environment. Additionally, oil prices showed an inverse relationship with green investment (consistent with the resource curse phenomenon), while economic growth and political stability exhibited direct effects. These results suggest the robustness of the proposed analytical frxamework, but their final confirmation depends on testing with real data in future research. The methodological frxamework presented can serve as a template for future empirical studies on sustainable finance and green energy in the Iraqi economy and similar oil-dependent countries. Policy recommendations baxsed on this frxamework include establishing a legal foundation for green bonds, reforming the tax system to favor green investments, enhancing policy transparency, and creating a government guarantee fund for renewable energy projects.
Keywords:
#Sustainable Finance #Green Energy Investment #Renewable Energy #Iraq #ARDL Model #Economic Diversification #Cost of Capital. Keeping place: Central Library of Shahrood University
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