We investigate factors influencing country-level renewable energy growth by applying FEVD and PCSE estimation methods in a unique sample analysis. With a longer time series (1990- 2010) and a broader sample size of countries (including Brazil, Russia, India, China and South Africa) than previous studies, our results reveal new insights. The results suggest that certain government-backed energy policies impede renewable energy investments, thus implying significant failures in policy design. These policies may be failing mainly because of uncertainty and the likelihood of discontinuity. Weak voluntary approaches are introduced in order to satisfy public demand for more sustainable investments and programmes; we find that these may have negative influences on the growth of renewables as well. The insight gained is consistent over the estimation methods employed.
- Energy policy
- Fixed effects with vector decomposition
- Panel corrected standard errors
- Renewable energy