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Governmental support and renewable energy production: A cross-country review

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  • Smirnova, Elena
  • Kot, Sebastian
  • Kolpak, Eugeny
  • Shestak, Viktor

Abstract

The modern development of renewable energy (RE) is largely associated with significant government intervention in the market. Direct support programs have had a direct impact on the de facto construction of industry infrastructure. In this regard, it is important to have an analytical understanding of the bases that determine the readiness of a state to support initiatives in a market, especially in such a turbulent one as in developing countries. The aim of this study is to identify the factors influencing government support for renewable energy production in China, India, and Russia. The research methodology is based on determining the factors of development of renewable energy using a survey of 57 experts and the regression models of the influence of renewable energy on the resulting indicators of the countries under study. The proposed methodological approach provides an opportunity for a qualitative and quantitative assessment of state support of renewable energy production in the studied countries. The results of the study demonstrate that the key drivers of influence on the renewable energy market are expanding access to financing for renewable energy sources, reducing the share of traditional energy sources and ensuring public-private support for renewable energy projects. Using correlation-regression modeling, the relationship between the socio-economic indicators of the studied countries and the main indicators of the development of renewable energy (the number of renewable energy business entities, facilities, and their total installed capacity) was determined. The modeling based on regression equations shows that renewable energy in the studied countries has favorable prerequisites for development, but their implementation requires purposeful and coordinated actions on the part of government and business.

Suggested Citation

  • Smirnova, Elena & Kot, Sebastian & Kolpak, Eugeny & Shestak, Viktor, 2021. "Governmental support and renewable energy production: A cross-country review," Energy, Elsevier, vol. 230(C).
    • Handle: RePEc:eee:energy:v:230:y:2021:i:c:s0360544221011518
    DOI: 10.1016/j.energy.2021.120903
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