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Energy market liberalisation and renewable energy policies in OECD countries

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  • Francesco Vona

    (Observatoire français des conjonctures économiques)

  • Francesco Nicolli

    (Facoltà di Economia (Faculty of Economics))

Abstract

We analyse the impact of market liberalisation on renewable energy policies in OECD countries. To this end, we first develop an aggregated indicator of renewable energy policies using principal components analysis and then examine its determinants through panel datatechniques. Our resultsare consistent with the predictions of political-economy models of environmental policies, as brown lobbying, proxied by entry barriers in the energy sector, and citizens’ preferenceshave the expected effectson policy. Brown lobbying has a negative effect on the policy indicator, evenwhen accounting for endogeneity in its effects in a dynamic panel specification and using different policy indicators. Reducing income inequality, the ratification of the Kyoto protocol and stronger green parties all positively affect the approval of more ambitious policies but with less robust results.

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  • Francesco Vona & Francesco Nicolli, 2013. "Energy market liberalisation and renewable energy policies in OECD countries," Sciences Po publications 2013-10, Sciences Po.
  • Handle: RePEc:spo:wpmain:info:hdl:2441/f6h8764enu2lskk9p544jc8op
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    Cited by:

    1. Michael G. Pollitt, 2019. "The European Single Market in Electricity: An Economic Assessment," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 55(1), pages 63-87, August.
    2. Hakimi, Abdelaziz & Hamdi, Helmi, 2016. "Trade liberalization, FDI inflows, environmental quality and economic growth: A comparative analysis between Tunisia and Morocco," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1445-1456.
    3. Michael G. Pollitt & Lewis Dale, 2018. "Restructuring the Chinese Electricity Supply Sector – How industrial electricity prices are determined in a liberalized power market: lessons from Great Britain," Working Papers EPRG 1839, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.

    More about this item

    Keywords

    Renewable Energy Policy; Energy Market Liberalisation; Political Economy;

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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