“Nuclear” and “nonnuclear” countries: Divergences on investment decisions in renewable energy sources

ABSTRACT

The aim of this study is to analyze the key factors of investment in renewable energy sources between countries with, or without, nuclear power plants. To address these issues, a dynamic panel analysis of the renewable investments in a sample of 32 countries is proposed. This study controls variables for socioeconomic, environmental, and policy characteristics in a time span between 1980 and 2008. Results demonstrate that investments in renewable sources present an inverse relationship with share of nuclear power generation in countries with nuclear power plants; however, in countries with power generation based on fossil fuel, investments in renewable sources depend on a number of factors.

KEYWORDS:

• Dynamic model
• renewable energy sources
• sustainable energy

Notes

¹ For example, the European Commission with the Directive 2001/77/EC aims to promote the electricity produced from renewable energy sources.