Weak Governance and the Renewable Energy Challenge: How Institutional Quality Shapes Environmental Responsibility in OIC Countries

This paper examines the impact of institutional quality on the adoption of renewable energy in the member states of Organization of Islamic Cooperation (OIC) with an in-depth explanation of the role of corruption control. Although the region has enormous potential of renewable energy, most of the OIC countries are still very reliant on fossil fuels, and this begs the question of the barriers to governance of sustainable transitions to energy. Through panel data in 1996- 2024, the study analyses the impact of government effectiveness, corruption control, and rule of law on the consumption of renewable energy. The data have been used based on World Development Indicators (WDI) and Worldwide Governance Indicators (WGI) and have been examined using panel econometric models, with the use of fixed and random-effects tests as well as the Hausman tests to assess the robustness. These findings indicate that the influence of corruption control as an institutional factor on the adoption of renewable energy is the greatest, and transparency and accountability are crucial in influencing energy transitions. Contrastingly, rule of law only exhibits peripheral effects whereas there is no significant effect of government effectiveness. Further evidence shows that CO 2 emissions harm the utilization of renewable energy, but urbanization promotes its growth. These results highlight the fact that the issue of renewable energy in OIC countries lies less with technical or financial limitations but with institutional weaknesses, especially corruption. To make progress in climate responsibility and deliver on commitments in the Paris Agreement and the Sustainable Development Goals, it is necessary to strengthen anti-corruption frameworks and institutionalize governance reforms into the energy policies.