Feed-in tariffs in scaling up solar and wind energy to shield nations from fossil fuel dependence

Purpose - The study attempts to understand how feed-in-tariffs (FITs), government expenditures and environmental quality can impact solar and wind energy consumption (SWC) of nations and can act as a shield against global energy tensions by reducing fossil fuel dependence. Design/methodology/approach - Organization for Economic Co-operation and Development (OECD) and non-OECD countries are compared based on the effectiveness of total governmental expenditures, mean FITs and carbon emissions in influencing SWC and fossil fuel dependence over the period 2000–2019. Fixed-effects panel data regression and bootstrapped panel quantile regression are used in estimations. Findings - FITs and government expenditures boosted SWC in OECD countries, while they were not very effective in non-OECD. Unlike OECD nations, total government expenditures were also not influential in reducing fossil fuel dependence in non-OECD countries. Countries with higher carbon emissions had lower SWC and higher fossil fuel dependence, showing lesser environmental concerns and energy crisis vulnerabilities. Research limitations/implications - There is a need for more renewable energy financing programs and governmental expenditures to promote SWC in non-OECD nations. The detrimental effect of carbon emissions on SWC and the positive effect on fossil fuel dependence show the lack of efforts in high carbon-emitting countries in adopting cleaner technologies. Originality/value - The unique contribution of the study lies in the comparative analysis of the effectiveness of renewable energy financing for country groups and exploring the effects on renewables and fossil fuels simultaneously. An analysis of higher carbon emissions leading to an emission loop by increasing fossil fuel dependence also provides novelty to the study.