IDEAS home Printed from https://ideas.repec.org/a/aen/journl/33-2-01.html
   My bibliography  Save this article

What Drives States to Support Renewable Energy?

Author

Listed:
  • Steffen Jenner, Gabriel Chan, Rolf Frankenberger, and Mathias Gabel

Abstract

Why do states support electricity generation from renewable energy sources? Lyon/ Yin (2010), Chandler (2009), and Huang et al. (2007) have answered this question for the adoption of renewable portfolio standards (RPS) at the U.S. state level. This article supplements their work by testing the core hypotheses on the EU27 sample between 1990 and 2010. Furthermore, the article asks why the majority of EU states relies on feed-in-tariffs (FIT). The study conducts logistic time series cross-section regression analyses that run on a hazard model. Evidence in support of private interest theory and public interest theory is provided. (a) The existence of a solar energy association increases the probability of a state to adopt regulation. (b) Solar radiation, and (c) the unemployment rate also increase the odds. (d) Electricity market concentration decreases the probability of transition.

Suggested Citation

  • Steffen Jenner, Gabriel Chan, Rolf Frankenberger, and Mathias Gabel, 2012. "What Drives States to Support Renewable Energy?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    • Handle: RePEc:aen:journl:33-2-01
    as

    Download full text from publisher

    File URL: http://www.iaee.org/en/publications/ejarticle.aspx?id=2474
    Download Restriction: Access to full text is restricted to IAEE members and subscribers.
    ---><---

    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. Volkmar Lauber & Lutz Mez, 2004. "Three Decades of Renewable Electricity Policies in Germany," Energy & Environment, , vol. 15(4), pages 599-623, July.
    2. Christopher R. Knittel, 2006. "The Adoption Of State Electricity Regulation: The Role Of Interest Groups," Journal of Industrial Economics, Wiley Blackwell, vol. 54(2), pages 201-222, June.
    3. 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.
    4. Philippe Menanteau & Dominique Finon & Marie-Laure Lamy, 2003. "Prices versus quantities :environmental policies for promoting the development of renewable energy," Post-Print halshs-00480457, HAL.
    5. Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 646-679, June.
    6. Menanteau, Philippe & Finon, Dominique & Lamy, Marie-Laure, 2003. "Prices versus quantities: choosing policies for promoting the development of renewable energy," Energy Policy, Elsevier, vol. 31(8), pages 799-812, June.
    7. Thomas P. Lyon & Haitao Yin, 2010. "Why Do States Adopt Renewable Portfolio Standards?: An Empirical Investigation," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 133-158.
    8. Kiefer,Nicholas M. & Neumann,George R., 2006. "Search Models and Applied Labor Economics," Cambridge Books, Cambridge University Press, number 9780521024648.
    9. Robert O’brien, 2007. "A Caution Regarding Rules of Thumb for Variance Inflation Factors," Quality & Quantity: International Journal of Methodology, Springer, vol. 41(5), pages 673-690, October.
    10. Chandler, Jess, 2009. "Trendy solutions: Why do states adopt Sustainable Energy Portfolio Standards?," Energy Policy, Elsevier, vol. 37(8), pages 3274-3281, August.
    11. Paul Conway & Giuseppe Nicoletti, 2006. "Product Market Regulation in the Non-Manufacturing Sectors of OECD Countries: Measurement and Highlights," OECD Economics Department Working Papers 530, OECD Publishing.
    12. Couture, Toby & Gagnon, Yves, 2010. "An analysis of feed-in tariff remuneration models: Implications for renewable energy investment," Energy Policy, Elsevier, vol. 38(2), pages 955-965, February.
    13. Keller, Sarina, 2010. "Sources of difference: In answer to the article about diverging paths of German and US policies for renewable energies," Energy Policy, Elsevier, vol. 38(8), pages 4741-4742, August.
    14. 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.
    15. Jean-Michel Glachant & François Lévêque, 2009. "Electricity Reform in Europe," Post-Print hal-00461753, HAL.
    16. Gary S. Becker, 1983. "A Theory of Competition Among Pressure Groups for Political Influence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(3), pages 371-400.
    17. Laird, Frank N. & Stefes, Christoph, 2009. "The diverging paths of German and United States policies for renewable energy: Sources of difference," Energy Policy, Elsevier, vol. 37(7), pages 2619-2629, July.
    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. Jenner, Steffen & Groba, Felix & Indvik, Joe, 2013. "Assessing the strength and effectiveness of renewable electricity feed-in tariffs in European Union countries," Energy Policy, Elsevier, vol. 52(C), pages 385-401.
    2. Nicolli, Francesco & Vona, Francesco, 2019. "Energy market liberalization and renewable energy policies in OECD countries," Energy Policy, Elsevier, vol. 128(C), pages 853-867.
    3. Steffen Jenner & Lotte Ovaere & Stephan Schindele, 2013. "The Impact of Private Interest Contributions on RPS Adoption," Economics and Politics, Wiley Blackwell, vol. 25(3), pages 411-423, November.
    4. repec:hal:spmain:info:hdl:2441/f6h8764enu2lskk9p544jc8op is not listed on IDEAS
    5. 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).
    6. Farah Roslan & Ștefan Cristian Gherghina & Jumadil Saputra & Mário Nuno Mata & Farah Diana Mohmad Zali & José Moleiro Martins, 2022. "A Panel Data Approach towards the Effectiveness of Energy Policies in Fostering the Implementation of Solar Photovoltaic Technology: Empirical Evidence for Asia-Pacific," Energies, MDPI, vol. 15(10), pages 1-22, May.
    7. Stokes, Leah C., 2013. "The politics of renewable energy policies: The case of feed-in tariffs in Ontario, Canada," Energy Policy, Elsevier, vol. 56(C), pages 490-500.
    8. Nicolini, Marcella & Tavoni, Massimo, 2017. "Are renewable energy subsidies effective? Evidence from Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 412-423.
    9. Romano, Antonio A. & Scandurra, Giuseppe & Carfora, Alfonso & Fodor, Mate, 2017. "Renewable investments: The impact of green policies in developing and developed countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 738-747.
    10. Kahia, Montassar & Ben Aissa, Mohamed Safouane & kadria, Mohamed, 2014. "Do renewable energy policies promote economic growth? A nonparametric approach," MPRA Paper 80751, University Library of Munich, Germany.
    11. del Río, Pablo & Bleda, Mercedes, 2012. "Comparing the innovation effects of support schemes for renewable electricity technologies: A function of innovation approach," Energy Policy, Elsevier, vol. 50(C), pages 272-282.
    12. Pérez de Arce, Miguel & Sauma, Enzo & Contreras, Javier, 2016. "Renewable energy policy performance in reducing CO2 emissions," Energy Economics, Elsevier, vol. 54(C), pages 272-280.
    13. 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.
    14. Valérie Mignon & Margaux Escoffier & Emmanuel Hache & Anthony Paris, 2019. "Determinants of investments in solar photovoltaic: Do oil prices really matter?," EconomiX Working Papers 2019-28, University of Paris Nanterre, EconomiX.
    15. Polzin, Friedemann & Migendt, Michael & Täube, Florian A. & von Flotow, Paschen, 2015. "Public policy influence on renewable energy investments—A panel data study across OECD countries," Energy Policy, Elsevier, vol. 80(C), pages 98-111.
    16. 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.
    17. Pablo Río & Miguel Tarancón & Cristina Peñasco, 2014. "The determinants of support levels for wind energy in the European Union. An econometric study," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 19(4), pages 391-410, April.
    18. Zhao, Xiaoli & Li, Shujie & Zhang, Sufang & Yang, Rui & Liu, Suwei, 2016. "The effectiveness of China's wind power policy: An empirical analysis," Energy Policy, Elsevier, vol. 95(C), pages 269-279.
    19. Johannes Urpelainen, 2012. "How do electoral competition and special interests shape the stringency of renewable energy standards?," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 14(1), pages 23-34, January.
    20. Justyna Godawska & Joanna Wyrobek, 2021. "The Impact of Environmental Policy Stringency on Renewable Energy Production in the Visegrad Group Countries," Energies, MDPI, vol. 14(19), pages 1-23, September.
    21. Huang, Shih-Chieh & Lo, Shang-Lien & Lin, Yen-Ching, 2013. "Application of a fuzzy cognitive map based on a structural equation model for the identification of limitations to the development of wind power," Energy Policy, Elsevier, vol. 63(C), pages 851-861.

    More about this item

    JEL classification:

    • F0 - International Economics - - General

    Statistics

    Access and download statistics

    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:aen:journl:33-2-01. 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: David Williams (email available below). General contact details of provider: https://edirc.repec.org/data/iaeeeea.html .

    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.