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ABSTRACT
In this paper, we analyze the drivers promoting the investments in renewable energy sources (RES) and the divergences on the basis of generation sources (hydroelectric and other renewable sources). To address these issues, a dynamic panel analysis of the renewable investments in a sample of 32 countries (Organisation for economic co-operation and development and Brasil, Russia, India, China and South Africa) with distinct economic and social structures, in the years between 2000 and 2008, is proposed. Results confirm that key factors promoting investments in RES vary according to generation sources considered. Investments in hydroelectric sources contribute to improve the environmental conditions, while the other sources are not significant. The policies are useful to support the investments in renewable energy. Results also show that share of nuclear and thermal electricity generation depress the investments in renewables.
Disclosure statement
No potential conflict of interest was reported by the authors.
Notes
1. Data about generation are taken from US EIA.
2. A number of countries, such as China, India, and Turkey, are undertaking large-scale hydro development programs, and there are projects under construction in about 80 countries.
3. Romano et al. [Citation21] analyze the factors behind the adoption of FIT using a panel probit model on a set of 43 countries, and estimate the probability that countries adopt the FiT under different scenarios.
4. The Arellano and Bond framework suggests that if the Sargan test from one step homoskedastic estimator rejects the null hypothesis, this could be due to heteroskedasticity. While the two-step models take account of heteroskedasticity, using a two-step estimator can produce large efficiency gain, as suggested by the authors.