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Energy market liberalization and renewable energy policies in OECD countries

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  • Francesco Vona

    ()
    (OFCE SciencesPo)

  • Francesco Nicolli

    (CERIS/CNR)

Abstract

We investigate the effect of energy liberalizations on policies that support renewable energy in a long panel of OECD countries. We estimate this effect accounting for the endogeneity of liberalization related to joint decisions within a country’s energy strategy. Using regulation in other industries as instruments, we find that energy liberalization increases the public support to renewable energy. The effect of liberalization is the second largest after the effect of per-capita income and is fully driven by reductions in entry barriers, while the effect of privatization is negative. Finally, our results are robust to dynamic specifications and various policy indicators.

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Bibliographic Info

Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2014/18.

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Length: 55 pages
Date of creation: 2014
Date of revision:
Handle: RePEc:ieb:wpaper:2013/6/doc2014-18

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Keywords: Renewable energy policy; energy market liberalization; instrumental variables; applied political economy;

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