IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v15y2011i3p1601-1608.html
   My bibliography  Save this article

Drivers promoting renewable energy: A dynamic panel approach

Author

Listed:
  • Marques, António Cardoso
  • Fuinhas, José Alberto

Abstract

We study the commitment to renewable energy sources, focusing on a set of 24 European countries, and applying panel dynamic estimators. Europe is a leading player in the fight against climate change, and the estimators we use reveal themselves to be appropriate in handling the persistency effect on renewables. The level of renewable energy use in the previous period has a positive and highly significant effect on the current level of use. Traditional energy sources restrain the impetus towards renewables. Social awareness of sustainability, climate change mitigation and CO2 reduction targets are not enough to motivate the switch from traditional to renewables energy sources. Income and prices of fossil-based fuels were not significant for the development of renewables in the period from 1990 to 2006, suggesting that it was not the market that encouraged renewables.

Suggested Citation

  • Marques, António Cardoso & Fuinhas, José Alberto, 2011. "Drivers promoting renewable energy: A dynamic panel approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(3), pages 1601-1608, April.
    • Handle: RePEc:eee:rensus:v:15:y:2011:i:3:p:1601-1608
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364-0321(10)00417-X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chen, Cliff & Wiser, Ryan & Mills, Andrew & Bolinger, Mark, 2009. "Weighing the costs and benefits of state renewables portfolio standards in the United States: A comparative analysis of state-level policy impact projections," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(3), pages 552-566, April.
    2. Nick Johnstone & Ivan Haščič & David Popp, 2010. "Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(1), pages 133-155, January.
    3. Menz, Fredric C. & Vachon, Stephan, 2006. "The effectiveness of different policy regimes for promoting wind power: Experiences from the states," Energy Policy, Elsevier, vol. 34(14), pages 1786-1796, September.
    4. Sovacool, Benjamin K., 2009. "Rejecting renewables: The socio-technical impediments to renewable electricity in the United States," Energy Policy, Elsevier, vol. 37(11), pages 4500-4513, November.
    5. Carley, Sanya, 2009. "State renewable energy electricity policies: An empirical evaluation of effectiveness," Energy Policy, Elsevier, vol. 37(8), pages 3071-3081, August.
    6. Michalena, Evanthie & Angeon, Valrie, 2009. "Local challenges in the promotion of renewable energy sources: The case of Crete," Energy Policy, Elsevier, vol. 37(5), pages 2018-2026, May.
    7. Menyah, Kojo & Wolde-Rufael, Yemane, 2010. "CO2 emissions, nuclear energy, renewable energy and economic growth in the US," Energy Policy, Elsevier, vol. 38(6), pages 2911-2915, June.
    8. Awerbuch, Shimon & Sauter, Raphael, 2006. "Exploiting the oil-GDP effect to support renewables deployment," Energy Policy, Elsevier, vol. 34(17), pages 2805-2819, November.
    9. Bilgen, Selçuk & Keles, Sedat & Kaygusuz, Abdullah & SarI, Ahmet & Kaygusuz, Kamil, 2008. "Global warming and renewable energy sources for sustainable development: A case study in Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(2), pages 372-396, February.
    10. Jäger-Waldau, Arnulf, 2007. "Photovoltaics and renewable energies in Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(7), pages 1414-1437, September.
    11. Verbruggen, Aviel & Fischedick, Manfred & Moomaw, William & Weir, Tony & Nadaï, Alain & Nilsson, Lars J. & Nyboer, John & Sathaye, Jayant, 2010. "Renewable energy costs, potentials, barriers: Conceptual issues," Energy Policy, Elsevier, vol. 38(2), pages 850-861, February.
    12. Huang, Ming-Yuan & Alavalapati, Janaki R.R. & Carter, Douglas R. & Langholtz, Matthew H., 2007. "Is the choice of renewable portfolio standards random?," Energy Policy, Elsevier, vol. 35(11), pages 5571-5575, November.
    13. Frondel, Manuel & Ritter, Nolan & Schmidt, Christoph M. & Vance, Colin, 2010. "Economic impacts from the promotion of renewable energy technologies: The German experience," Energy Policy, Elsevier, vol. 38(8), pages 4048-4056, August.
    14. van Rooijen, Sascha N.M. & van Wees, Mark T., 2006. "Green electricity policies in the Netherlands: an analysis of policy decisions," Energy Policy, Elsevier, vol. 34(1), pages 60-71, January.
    15. Sadorsky, Perry, 2009. "Renewable energy consumption and income in emerging economies," Energy Policy, Elsevier, vol. 37(10), pages 4021-4028, October.
    16. Streimikiene, Dalia & Klevas, Valentinas, 2007. "Promotion of renewable energy in Baltic States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(4), pages 672-687, May.
    17. Bruno, Giovanni S.F., 2005. "Approximating the bias of the LSDV estimator for dynamic unbalanced panel data models," Economics Letters, Elsevier, vol. 87(3), pages 361-366, June.
    18. Wustenhagen, Rolf & Wolsink, Maarten & Burer, Mary Jean, 2007. "Social acceptance of renewable energy innovation: An introduction to the concept," Energy Policy, Elsevier, vol. 35(5), pages 2683-2691, May.
    19. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    20. Kumar, Ashwani & Kumar, Kapil & Kaushik, Naresh & Sharma, Satyawati & Mishra, Saroj, 2010. "Renewable energy in India: Current status and future potentials," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(8), pages 2434-2442, October.
    21. Bolinger, Mark & Wiser, Ryan & Golove, William, 2006. "Accounting for fuel price risk when comparing renewable to gas-fired generation: the role of forward natural gas prices," Energy Policy, Elsevier, vol. 34(6), pages 706-720, April.
    22. Sadorsky, Perry, 2009. "Renewable energy consumption, CO2 emissions and oil prices in the G7 countries," Energy Economics, Elsevier, vol. 31(3), pages 456-462, May.
    23. Reiche, Danyel, 2010. "Renewable Energy Policies in the Gulf countries: A case study of the carbon-neutral "Masdar City" in Abu Dhabi," Energy Policy, Elsevier, vol. 38(1), pages 378-382, January.
    24. Chang, Ting-Huan & Huang, Chien-Ming & Lee, Ming-Chih, 2009. "Threshold effect of the economic growth rate on the renewable energy development from a change in energy price: Evidence from OECD countries," Energy Policy, Elsevier, vol. 37(12), pages 5796-5802, December.
    25. Gan, Lin & Eskeland, Gunnar S. & Kolshus, Hans H., 2007. "Green electricity market development: Lessons from Europe and the US," Energy Policy, Elsevier, vol. 35(1), pages 144-155, January.
    26. Bird, Lori & Bolinger, Mark & Gagliano, Troy & Wiser, Ryan & Brown, Matthew & Parsons, Brian, 2005. "Policies and market factors driving wind power development in the United States," Energy Policy, Elsevier, vol. 33(11), pages 1397-1407, July.
    27. van Ruijven, Bas & van Vuuren, Detlef P., 2009. "Oil and natural gas prices and greenhouse gas emission mitigation," Energy Policy, Elsevier, vol. 37(11), pages 4797-4808, November.
    28. Wang, Yan, 2006. "Renewable electricity in Sweden: an analysis of policy and regulations," Energy Policy, Elsevier, vol. 34(10), pages 1209-1220, July.
    29. Klevas, Valentinas & Streimikiene, Dalia & Grikstaite, Ramute, 2007. "Sustainable energy in Baltic States," Energy Policy, Elsevier, vol. 35(1), pages 76-90, January.
    30. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    31. Wustenhagen, Rolf & Bilharz, Michael, 2006. "Green energy market development in Germany: effective public policy and emerging customer demand," Energy Policy, Elsevier, vol. 34(13), pages 1681-1696, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. António Marques & José Fuinhas & José Manso, 2011. "A Quantile Approach to Identify Factors Promoting Renewable Energy in European Countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 49(3), pages 351-366, July.
    2. Marques, António C. & Fuinhas, José A. & Pires Manso, J.R., 2010. "Motivations driving renewable energy in European countries: A panel data approach," Energy Policy, Elsevier, vol. 38(11), pages 6877-6885, November.
    3. Lin, Boqiang & Omoju, Oluwasola E. & Okonkwo, Jennifer U., 2016. "Factors influencing renewable electricity consumption in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 687-696.
    4. Escoffier, Margaux & Hache, Emmanuel & Mignon, Valérie & Paris, Anthony, 2021. "Determinants of solar photovoltaic deployment in the electricity mix: Do oil prices really matter?," Energy Economics, Elsevier, vol. 97(C).
    5. Margaux Escoffier & Emmanuel Hache & Valérie Mignon & Anthony Paris, 2019. "Determinants of investments in solar photovoltaic: Do oil prices really matter?," Working Papers hal-04141866, HAL.
    6. Aguirre, Mariana & Ibikunle, Gbenga, 2014. "Determinants of renewable energy growth: A global sample analysis," Energy Policy, Elsevier, vol. 69(C), pages 374-384.
    7. Alessandro Marra & Emiliano Colantonio, 2022. "The institutional and socio-technical determinants of renewable energy production in the EU: implications for policy," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(2), pages 267-299, June.
    8. Marques, António Cardoso & Fuinhas, José Alberto, 2012. "Are public policies towards renewables successful? Evidence from European countries," Renewable Energy, Elsevier, vol. 44(C), pages 109-118.
    9. Biresselioglu, Mehmet Efe & Kilinc, Dilara & Onater-Isberk, Esra & Yelkenci, Tezer, 2016. "Estimating the political, economic and environmental factors’ impact on the installed wind capacity development: A system GMM approach," Renewable Energy, Elsevier, vol. 96(PA), pages 636-644.
    10. Mac Domhnaill, Ciarán & Ryan, Lisa, 2020. "Towards renewable electricity in Europe: Revisiting the determinants of renewable electricity in the European Union," Renewable Energy, Elsevier, vol. 154(C), pages 955-965.
    11. Fadly, Dalia, 2019. "Low-carbon transition: Private sector investment in renewable energy projects in developing countries," World Development, Elsevier, vol. 122(C), pages 552-569.
    12. Zheng-Xia He & Shi-Chun Xu & Qin-Bin Li & Bin Zhao, 2018. "Factors That Influence Renewable Energy Technological Innovation in China: A Dynamic Panel Approach," Sustainability, MDPI, vol. 10(1), pages 1-30, January.
    13. Marra, Alessandro & Colantonio, Emiliano, 2021. "The path to renewable energy consumption in the European Union through drivers and barriers: A panel vector autoregressive approach," Socio-Economic Planning Sciences, Elsevier, vol. 76(C).
    14. Thomas, Pinky & Khurana, Ritika & Etienne, Xiaoli L. & Collins, Alan R., 2023. "The Impacts of State Policies on Renewable Energy Generation Capacity: A County-Level Spatial Panel Analysis," 2023 Annual Meeting, July 23-25, Washington D.C. 335717, Agricultural and Applied Economics Association.
    15. Lin, Boqiang & Omoju, Oluwasola E., 2017. "Focusing on the right targets: Economic factors driving non-hydro renewable energy transition," Renewable Energy, Elsevier, vol. 113(C), pages 52-63.
    16. García-Álvarez, María Teresa & Cabeza-García, Laura & Soares, Isabel, 2017. "Analysis of the promotion of onshore wind energy in the EU: Feed-in tariff or renewable portfolio standard?," Renewable Energy, Elsevier, vol. 111(C), pages 256-264.
    17. Zhao, Yong & Tang, Kam Ki & Wang, Li-li, 2013. "Do renewable electricity policies promote renewable electricity generation? Evidence from panel data," Energy Policy, Elsevier, vol. 62(C), pages 887-897.
    18. Bongsuk Sung & Cui Wen, 2018. "Causal Dynamic Relationships between Political–Economic Factors and Export Performance in the Renewable Energy Technologies Market," Energies, MDPI, vol. 11(4), pages 1-18, April.
    19. Altaf Hussain & Muhammad Ayub & Salyha Zulfiqar Ali Shah, 2021. "Analysis of Factors Affecting Renewable Energy Consumption Evidenced from Thailand," iRASD Journal of Energy and Environment, International Research Association for Sustainable Development (iRASD), vol. 2(2), pages 67-77, December.
    20. Valdés Lucas, Javier Noel & Escribano Francés, Gonzalo & San Martín González, Enrique, 2016. "Energy security and renewable energy deployment in the EU: Liaisons Dangereuses or Virtuous Circle?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 1032-1046.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:15:y:2011:i:3:p:1601-1608. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.