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Will policies to promote renewable electricity generation be effective? Evidence from panel stationarity and unit root tests for 115 countries

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  • Lean, Hooi Hooi
  • Smyth, Russell

Abstract

This study examines whether policies to promote renewable electricity generation are likely to be effective by applying panel unit root and stationarity tests to time series data on renewable electricity generation for 115 countries over the period 1980–2008. We find that for the panel as a whole, and almost three quarters of the individual countries, renewable electricity generation is characterized by a unit root. This result implies that policies to promote renewable electricity generation, such as renewable portfolio standards, which result in annual increases in renewable energy and, as such, which represent permanent positive shocks to the long-run growth path of renewable electricity generation, will be more effective in increasing renewable electricity generation than policies with a pre-specified time horizon.

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  • Lean, Hooi Hooi & Smyth, Russell, 2013. "Will policies to promote renewable electricity generation be effective? Evidence from panel stationarity and unit root tests for 115 countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 371-379.
  • Handle: RePEc:eee:rensus:v:22:y:2013:i:c:p:371-379
    DOI: 10.1016/j.rser.2013.01.059
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    11. Lean, Hooi Hooi & Smyth, Russell, 2014. "Will initiatives to promote hydroelectricity consumption be effective? Evidence from univariate and panel LM unit root tests with structural breaks," Energy Policy, Elsevier, vol. 68(C), pages 102-115.
    12. Lin, Boqiang & Omoju, Oluwasola E. & Okonkwo, Jennifer U., 2015. "Impact of industrialisation on CO2 emissions in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1228-1239.
    13. Andreea ZAMFIR, 2014. "Developing URBAN RENEWABLE ENERGY PROJECTS: OPPORTUNITIES AND CHALLENGES FOR ROMANIA," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 9(4), pages 52-64, November.
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    15. Firouz Fallahi & Mohammad Karimi & Marcel-Cristian Voia, 2014. "Are Shocks to Energy Consumption Persistent? Evidence from Subsampling Confidence Intervals," Carleton Economic Papers 14-02, Carleton University, Department of Economics.

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