Probabilities to adopt feed in tariff conditioned to economic transition: A scenario analysis

Abstract

a b s t r a c tIn this paper we analyze the factors behind the adoption of Feedein Tariff and we estimate the probabilities that countries not yet adopted the FiT will propose it under different scenario hypotheses. We estimate a panel probit model to a set of 43 countries using annual data covering the period 1980e2008. We employ the binary time series of adoption of the FeedeineTariff as outcome variable and control for a set of economics, environmental and generation factors. Results demonstrate that adoption of FiT depends by various factors. Furthermore, we highlights that one of the main factors is the economic growth. The frequency with which the developed countries adopt the FiT is significantly higher than in developing countries and the probability to adopt FiT increases as income grows up.

How Do Energy Use and Climate Change Affect Fast-Start Finance? A Cross-Country Empirical Investigation

“…The last group considers the economic and structural indicators, namely the gross domestic product (lgdp) to control the related level of economic development, the percentage of the population with direct access to the power grid (acc_el) and electricity consumption (ln_elcons) as a proxy of a country's economic development [60]. Generally, as discussed in Section 2, countries can improve environmental conditions by increasing their investment in RES e.g., [61]. Therefore, the latter variable becomes essential for economic, political, and social development [44].…”

Implications of Fiscal and Financial Policies on Unlocking Green Finance and Green Investment

“…While studies on renewable energy investigate a diverse set of issues and range from studies on unlocking renewable energy investment (International Renewable Energy Agency (IRENA) 2016) to studies on the effects of environmental policies on innovation (Johnstone, Hascic, and Popp 2010;Nesta, Vona, and Nicolli 2014), the role of energy efficiency policies (Ringel et al 2016), the role of policies in investments in renewable energy (Popp, Hascic, and Medhi 2011), and the adoption of feed-in tariffs (Romano, Scandurra, and Carfora 2015), studies examining the determinants of private investment in the renewable energy sector are scarce.…”

Environmental, generation and policy determinants of feed-in tariff

“…Romano and Scandurra (2011) analyze the investments in RES in low carbon and high carbon economies using a panel dataset. More recently the same Authors study the key factors promoting the investments in RES in a panel dataset of Petroleum Exporting Countries (OPEC) members (Romano and Scandurra, 2014 and Romano et al, in press), and the role of economic growth as driver of the FiT adoption (Romano et al, 2015). In the first case, lack of grants and/or incentives to promote the installations of new renewable power plants has been considered a limit for the sustainable development of the OPEC countries, in the second it came to light as the economic growth is one of the main driver of the FiT adoption.…”