Theoretical Foundations of Financial Mechanism for the Development of Renewable Energy

The global concept of sustainable development of countries has predetermined the global trends of transition to carbon-free energy sources, among which renewable energy sources are the most promising. In this regard, the development of the theoretical foundations of the financial mechanism for the development of renewable energy is an urgent task of the financial policy and energy industry of the states. Due to the absence of limited literature data on the basic foundations of the financial mechanism for the development of renewable energy and its relationship with economic laws, the purpose of the study is the development of theoretical foundations of the financial mechanism for the development of renewable energy. To achieve this goal, data from scientific and educational literature of foreign authors and methods of dialectical logic and deduction were used. The article reviews, systematizes and analyzes the literature data on the relationship of the financial mechanism of economic processes with economic laws. The effect of objective economic laws of increasing needs, conformity of production relations to the level and character of development of productive forces, competition, value, supply and demand, and monetary circulation in the economic processes of the renewable energy sector has been determined. The obtained research results have theoretical value, as they were obtained for the first time and can be used for the development of renewable energy in transition economies countries, developed and developing countries, including Kazakhstan.

1. Balakhnicheva, M. M. (2007). The essence of the financial and credit mechanism in the conditions of the market. Culture of the peoples of the Black Sea region, 121, 7-9. (In Russ.)

2. Brundtland, G. H. (1987). Our common future: The World Commission on Environment and Development. Oxford: Oxford University Press.

3. Caravale, A. G., & Tosato, A. D. (2010). Ricardo and the Theory of Value Distribution and Growth. New York, Routledge.

4. Cerin, P. (2006). Bringing economic opportunities into line with environmental influence: A Discussion on the Coase theorem and the Porter and van der Linde hypothesis. Ecological Economics, 56(2), 209-225. https://doi.org/10.1016/j.ecolecon.2005.01.016

5. Dernbach, J. C. (1998). Sustainable development as a framework for national governance. Case Western Reserve Law Review, 1(49), 103. [cited December 15, 2022]. Available at: https://scholarlycommons.law.case.edu/caselrev/vol49/iss1/3

6. Dernbach, J. C. (2003). Achieving sustainable development: The Centrality and multiple facets of integrated decision making. Indiana Journal of Global Legal Studies, 10, 247-284. 7. Dooley, C. P. (2009). The Labour Theory of Value. New York, Routledge.

7. Duncan, K. F. (2008). Adam’s Fallacy: A Guide to Economic Theology. Harvard, Harvard University Press.

8. Emas, R. (2015). The Concept of Sustainable Development: Definition and Defining Principles. Global Sustainable Development Report: BRIEFS. Florida International University, 1-3. https://doi.org/10.13140/RG.2.2.34980.22404

9. Frumina, S. V. (2014). Characteristics of elements of the financial mechanism. Vector of Science of Togliatti State University, Series: Economics and Management, 4, 49-52. (In Russ.)

10. Gryaznova, A. G., Markina, E. V., & Sedova, M. L. (2012). Finance: textbook. Moscow: Finance and Statistics. (In Russ.)

11. Hunt, K. E., & Lautzenheiser, M. (2011). History of Economic Thought: A Critical Perspective. New York, Routledge.

12. Hustveit, M., Frogner, J. S., & Fleten, S. (2017). Tradable green certificates for renewable support: The role of expectations and uncertainty. Energy, 141, 1717-1727. https://doi.org/10.1016/j.energy.2017.11.013

13. IRENA. (2012). Financial Mechanisms and Investment Frameworks for Renewables in Developing Countries. The Report of the International Renewable Energy Agency, 1-112. [cited December 25, 2022]. Available at: https://www.irena.org/publications/2013/Jan/Financial-Mechanismsand-Investment-Frameworks-for-Renewables-in-Developing-Countries

14. Keynes, J. M. (2007). General theory of employment, interest and money. Favorites. Moscow, Eksmo. (In Russ.)

15. Kotova, E. V. (2007). Financial and credit mechanism of regional support of small business: monograph. Rostov on Don, Antey. (In Russ.)

16. Lu, G., Jiang, P., Lev, B., & Zhou, X. (2020). Balancing of supply and demand of renewable energy power system: A review and bibliometric analysis. Sustainable Futures, 2, 100013. https://doi.org/10.1016/j.sftr.2020.100013

17. Lychagin, A. A., Strebkov, D. S. (2008). On the development of renewable energy. Achievements of science and technology of the Agro-industrial complex, 3, 35-38. (In Russ.)

18. Ng, T. H., & Tao, J. Y. (2016). Bond financing for renewable energy in Asia. Energy Policy, 95, 509-517. https://doi.org/10.1016/j.enpol.2016.03.015

19. Pessel, M. A. (1977). Financial and credit mechanism of intensification of social production. Moscow, Finance. (In Russ.)

20. Saunders, M., Lewis, Ph., & Thornhill, A. (2009). Research methods for business students. England, Pearson, 5th ed.

21. Sharinova, G. A., & Emelianenko, M. P. (2013). Financial mechanism in the financial management system. Young scientist, 10(57), 410-411. (In Russ.)

22. Sinha, A. (2021). Theories of Value from Adam Smith to Piero Sraffa. India, Routledge.

23. Tarabrin, O. A., Kurilova, A. A., & Kurilov, K. Yu. (2012). Theoretical foundations of the formation of a financial management mechanism. Bulletin of the UGAES. The science, Education, Economics Series, 2(2), 49-59. (In Russ.)

24. Timmons, D., Harris, J. M., & Roach, B. (2014). The economics of renewable energy. Global Development And Environment Institute, Tufts University, 52, 1-52.

25. Xu, R., Song, Z., Tang, Q., & Yu, Zh. (2018). The cost and marketability of renewable energy after power market reform in China: A review. Journal of Cleaner Production, 204, 409-424. http://dx.doi.org/10.1016/j.jclepro.2018.09.018