IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/65154.html
   My bibliography  Save this paper

Sustainable energy for Development: Access to finance on renewable energy and energy efficiency technologies for Bangladesh

Author

Listed:
  • Kundu, Nobinkhor

Abstract

Bangladesh will achieve considerable success in acceleration of economic growth of course need for sustainable energy for development (SED). Renewable or ‘green’ energy is now at forefront of the country’s priorities for environmentally sustainable economic progress. The Power Division under the Ministry of Power, Energy & Mineral Resources (MPEMR) has declared a “Renewable Energy Policy of Bangladesh” and under the Companies Act, 1994, the GoB, is establishing an institution named “Sustainable Energy Development Authority” (SEDA). At present Bangladesh takes the different financing models that have been developed and tested for renewable energy projects in urban and rural communities and energy efficiency improvement projects. Bangladesh Bank (BB) has developed an incentive scheme for concessional refinancing for small solar energy, bio-gas plants and Effluent Treatment Plants (ETP). These are recent initiatives on their part and Banks are yet to take full advantage of such concessional refinance. To analysis primary data collected for used cross sectional study to be considered about allied factors for renewable energy especially solar energy. A structured questionnaire was prepared in the light of the objectives of the study that was filled up by direct interview. The multivariate techniques viz., multiple logistic regression models, will be used to identify the inputs significant for sustainable energy for development in Bangladesh that is accelerating economic growth of a nation. Software packages Eviews - 5.1 have built-in routines to estimate the logit model at the individual level. Logistic regressions have been presented with the dependent variable as an indicator of the probability of being in generate RE and EE. Dependent variables dummy of RE and EE (= 1, if a generate RE and EE is full, otherwise under) have been included. The expected sign of explanatory variables coefficients are positive and or negative respectively. Thus, other things remaining same, if high cost RE/EE technologies up to become low cost, each stakeholder will purchase RE/EE technologies. However, together all the regressors have a significant impact on the log of RE/EE, whose p-value is about 0.0000, which is statistically significant. We are looking at different sources of financing on both RE and EE investment decisions. Overall, financial institutions will aim to create a package that includes the total finance amount and the repayment terms, the interest rate, the repayment schedule and any guarantees or securities. When successful, these new approaches could be capable of triggering the involvement of commercial banks. Point of view of banking and financing institutions and risks associated with renewable energy (RE) and energy efficiency (EE) technologies for sustainable energy for development (SED).

Suggested Citation

  • Kundu, Nobinkhor, 2014. "Sustainable energy for Development: Access to finance on renewable energy and energy efficiency technologies for Bangladesh," MPRA Paper 65154, University Library of Munich, Germany, revised 20 Jun 2014.
    • Handle: RePEc:pra:mprapa:65154
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/65154/1/MPRA_paper_65154.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nyborg, Karine & Howarth, Richard B. & Brekke, Kjell Arne, 2006. "Green consumers and public policy: On socially contingent moral motivation," Resource and Energy Economics, Elsevier, vol. 28(4), pages 351-366, November.
    2. Bird, L. & Wüstenhagen, R. & Aabakken, J., 2002. "A review of international green power markets: recent experience, trends, and market drivers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 6(6), pages 513-536, December.
    3. Jefferson, Michael, 2006. "Sustainable energy development: performance and prospects," Renewable Energy, Elsevier, vol. 31(5), pages 571-582.
    4. Brekke, Kjell Arne & Kverndokk, Snorre & Nyborg, Karine, 2003. "An economic model of moral motivation," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 1967-1983, September.
    5. Nick Johnstone & Ivan Haščič & David Popp, 2010. "Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(1), pages 133-155, January.
    6. Jacobsson, Staffan & Lauber, Volkmar, 2006. "The politics and policy of energy system transformation--explaining the German diffusion of renewable energy technology," Energy Policy, Elsevier, vol. 34(3), pages 256-276, February.
    7. Peidong, Zhang & Yanli, Yang & jin, Shi & Yonghong, Zheng & Lisheng, Wang & Xinrong, Li, 2009. "Opportunities and challenges for renewable energy policy in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(2), pages 439-449, February.
    8. Shrimali, Gireesh & Kniefel, Joshua, 2011. "Are government policies effective in promoting deployment of renewable electricity resources?," Energy Policy, Elsevier, vol. 39(9), pages 4726-4741, September.
    9. Borchers, Allison M. & Duke, Joshua M. & Parsons, George R., 2007. "Does willingness to pay for green energy differ by source?," Energy Policy, Elsevier, vol. 35(6), pages 3327-3334, June.
    10. 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.
    11. Kobos, Peter H. & Erickson, Jon D. & Drennen, Thomas E., 2006. "Technological learning and renewable energy costs: implications for US renewable energy policy," Energy Policy, Elsevier, vol. 34(13), pages 1645-1658, September.
    12. Batley, S. L. & Colbourne, D. & Fleming, P. D. & Urwin, P., 2001. "Citizen versus consumer: challenges in the UK green power market," Energy Policy, Elsevier, vol. 29(6), pages 479-487, May.
    13. Hanley, Nick & Nevin, Ceara, 1999. "Appraising renewable energy developments in remote communities: the case of the North Assynt Estate, Scotland," Energy Policy, Elsevier, vol. 27(9), pages 527-547, September.
    14. Salmela, Suvi & Varho, Vilja, 2006. "Consumers in the green electricity market in Finland," Energy Policy, Elsevier, vol. 34(18), pages 3669-3683, December.
    15. Kotchen, Matthew J. & Moore, Michael R., 2007. "Private provision of environmental public goods: Household participation in green-electricity programs," Journal of Environmental Economics and Management, Elsevier, vol. 53(1), pages 1-16, January.
    16. Arkesteijn, Karlijn & Oerlemans, Leon, 2005. "The early adoption of green power by Dutch households: An empirical exploration of factors influencing the early adoption of green electricity for domestic purposes," Energy Policy, Elsevier, vol. 33(2), pages 183-196, January.
    17. Ek, Kristina & Söderholm, Patrik, 2008. "Norms and economic motivation in the Swedish green electricity market," Ecological Economics, Elsevier, vol. 68(1-2), pages 169-182, December.
    18. 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.
    19. 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.
    20. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
    21. Painuly, J.P, 2001. "Barriers to renewable energy penetration; a framework for analysis," Renewable Energy, Elsevier, vol. 24(1), pages 73-89.
    22. Tan, Kok Tat & Lee, Keat Teong & Mohamed, Abdul Rahman, 2008. "Role of energy policy in renewable energy accomplishment: The case of second-generation bioethanol," Energy Policy, Elsevier, vol. 36(9), pages 3360-3365, September.
    23. Bird, Lori & Bolinger, Mark & Gagliano, Troy & Wiser, Ryan & Brown, Matthew & Parsons, Brian, 2005. "Policies and market factors driving wind power development in the United States," Energy Policy, Elsevier, vol. 33(11), pages 1397-1407, July.
    24. Fouquet, Roger, 1998. "The United Kingdom demand for renewable electricity in a liberalised market," Energy Policy, Elsevier, vol. 26(4), pages 281-293, March.
    25. Winkler, Harald, 2005. "Renewable energy policy in South Africa: policy options for renewable electricity," Energy Policy, Elsevier, vol. 33(1), pages 27-38, January.
    26. Mitchell, Catherine & Connor, Peter, 2004. "Renewable energy policy in the UK 1990-2003," Energy Policy, Elsevier, vol. 32(17), pages 1935-1947, November.
    27. Popp, David & Hascic, Ivan & Medhi, Neelakshi, 2011. "Technology and the diffusion of renewable energy," Energy Economics, Elsevier, vol. 33(4), pages 648-662, July.
    28. Martinot, Eric, 2001. "Renewable energy investment by the World Bank," Energy Policy, Elsevier, vol. 29(9), pages 689-699, 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. Kundu, Nobinkhor, 2014. "Sustainable Renewable Energy for Development: Access to Finance on Solar Energy for Bangladesh," MPRA Paper 68084, University Library of Munich, Germany, revised 15 Sep 2014.
    2. Polzin, Friedemann & Egli, Florian & Steffen, Bjarne & Schmidt, Tobias S., 2019. "How do policies mobilize private finance for renewable energy?—A systematic review with an investor perspective," Applied Energy, Elsevier, vol. 236(C), pages 1249-1268.
    3. Dagher, Leila & Bird, Lori & Heeter, Jenny, 2017. "Residential green power demand in the United States," Renewable Energy, Elsevier, vol. 114(PB), pages 1062-1068.
    4. Litvine, Dorian & Wüstenhagen, Rolf, 2011. "Helping "light green" consumers walk the talk: Results of a behavioural intervention survey in the Swiss electricity market," Ecological Economics, Elsevier, vol. 70(3), pages 462-474, January.
    5. 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.
    6. Mac Domhnaill, Ciarán & Ryan, Lisa, 2020. "Towards renewable electricity in Europe: Revisiting the determinants of renewable electricity in the European Union," Renewable Energy, Elsevier, vol. 154(C), pages 955-965.
    7. Avri Eitan & Gillad Rosen & Lior Herman & Itay Fishhendler, 2020. "Renewable Energy Entrepreneurs: A Conceptual Framework," Energies, MDPI, vol. 13(10), pages 1-23, May.
    8. repec:hal:spmain:info:hdl:2441/f6h8764enu2lskk9p544jc8op is not listed on IDEAS
    9. Nicolli, Francesco & Vona, Francesco, 2019. "Energy market liberalization and renewable energy policies in OECD countries," Energy Policy, Elsevier, vol. 128(C), pages 853-867.
    10. 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.
    11. Mewton, Ross T. & Cacho, Oscar J., 2011. "Green Power voluntary purchases: Price elasticity and policy analysis," Energy Policy, Elsevier, vol. 39(1), pages 377-385, January.
    12. Torsten J. Gerpott & Ilaha Mahmudova, 2010. "Determinants of price mark‐up tolerance for green electricity – lessons for environmental marketing strategies from a study of residential electricity customers in Germany," Business Strategy and the Environment, Wiley Blackwell, vol. 19(5), pages 304-318, July.
    13. Felix Groba & Barbara Breitschopf, 2013. "Impact of Renewable Energy Policy and Use on Innovation: A Literature Review," Discussion Papers of DIW Berlin 1318, DIW Berlin, German Institute for Economic Research.
    14. Bongsuk Sung & Myung-Bae Yeom & Hong-Gi Kim, 2017. "Eco-Efficiency of Government Policy and Exports in the Bioenergy Technology Market," Sustainability, MDPI, vol. 9(9), pages 1-18, September.
    15. Oliver, Henry & Volschenk, Jako & Smit, Eon, 2011. "Residential consumers in the Cape Peninsula's willingness to pay for premium priced green electricity," Energy Policy, Elsevier, vol. 39(2), pages 544-550, February.
    16. García-Álvarez, María Teresa & Cabeza-García, Laura & Soares, Isabel, 2017. "Analysis of the promotion of onshore wind energy in the EU: Feed-in tariff or renewable portfolio standard?," Renewable Energy, Elsevier, vol. 111(C), pages 256-264.
    17. Gerlach, Heiko & Zheng, Xuemei, 2018. "Preferences for green electricity, investment and regulatory incentives," Energy Economics, Elsevier, vol. 69(C), pages 430-441.
    18. Wang, Tan & Gong, Yu & Jiang, Chuanwen, 2014. "A review on promoting share of renewable energy by green-trading mechanisms in power system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 923-929.
    19. Longo, Alberto & Markandya, Anil & Petrucci, Marta, 2008. "The internalization of externalities in the production of electricity: Willingness to pay for the attributes of a policy for renewable energy," Ecological Economics, Elsevier, vol. 67(1), pages 140-152, August.
    20. Ndebele, Tom, 2020. "Assessing the potential for consumer-driven renewable energy development in deregulated electricity markets dominated by renewables," Energy Policy, Elsevier, vol. 136(C).
    21. 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.

    More about this item

    Keywords

    Renewable Energy; Energy Efficiency; Sustainable Development;
    All these keywords.

    JEL classification:

    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:pra:mprapa:65154. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.