Renewable energy development and green public policies complementarities: The case of developed and developing countries

The aim of this paper is to analyze the factors determining the choice of energy policy setting in favor of renewable energy sources. We investigate if such determinants are different between countries at different stage of development. Finally, we study if the adoption of green energy policies is characterized by complementary or substitution effects. Our analysis aims at responding at two research questions: what are the factors influencing a country's choice for a specific type of energy policy? Is it possible to identify either complementary or substitute policy interventions based on a country's level of economic development? Moreover, are developing systematically different from developed countries in manage public and private resources for renewable energies? The empirical analysis employs a panel probit model estimated over a sample of 56 countries observed between 2004 and 2011. The results show that while context variables have the same impact in developed and developing countries, public operational variables play a different role. Governments in richer countries are bound to play only a role of an arbiter. On the contrary, governments of developing countries are more directly involved in the management of energy policies. Hence, a greater impact is recognized to policies with direct involvement of the government.