Mapping the determinants of energy investment: Evidence and trends from the literature

Abstract

In the context of the ongoing climate emergency, the energy sector occupies a pivotal role, requiring a substantial and accelerated expansion of renewable energy sources within the global energy mix. Such a transformation is fundamental to enabling the transition from a fossil fuel–based economy to a carbon- neutral development model, while simultaneously fostering the adoption of more sustainable production practices capable of supporting the electrification of economic systems. Within this emerging paradigm, the energy transition has gained increasing prominence as a strategic priority, emphasizing the need for a fair, balanced, and sustainable transformation through continued investment in cleaner production technologies and the electrification of the economy. Accordingly, understanding the key determinants that drive investment in the energy sector becomes essential. From this perspective, the present study conducts a systematic review of a sample of 599 articles indexed in the Scopus and Web of Science databases. The main objective is to advance the understanding of the factors influencing investment in the energy sector through a comprehensive reflection on the existing literature regarding its determinants. In this regard, the study identifies the principal dimensions that shape investment decisions in the energy sector and proposes a conceptual framework—the Diamond of Energy Investment—designed to support a more structured interpretation of these influencing factors. The findings allow the literature to be organized into five distinct clusters: Energy Policy; Environment; Growth and Foreign Direct Investment; Governance and Finance; and Socio-territorial Determinants of Energy Investment. Furthermore, the study highlights significant research gaps and offers directions for future research.