An Exploration of Renewable Energy Policies with an Econometric Approach

Abstract

This thesis focuses on the renewable energy policies for the case study countries (European Union, United States, United Kingdom, Turkey, and Nigeria) with using quantitative and qualitative analysis. The thesis adopts a three -pronged approach to address three main issues: The first paper investigates a 1990-2008 panel dataset to conduct an econometric analysis of policy instruments, such as; feed-in tariffs, quotas, tenders, and tax incentives, in promoting renewable energy deployment in 27 EU countries and 50 US states. The results suggest that renewable energy policy instruments play a significant role in encouraging renewable energy sources. Using data from 1990 to 2012 with the vector auto regression (VAR) approach for three case study countries, namely United Kingdom, Turkey, and Nigeria, the second paper focuses on how renewable energy consumption as part of total electricity consumption is affected by economic growth and electricity prices. The findings from the VAR model illustrate that the relationship between case study countries’ economic growth and renewable energy consumption is positive and economic growth in case study countries respond positively and significantly. The third paper focuses on the relationship between renewable energy policies and investment in renewables in the countries of United Kingdom and Turkey. The third paper builds upon current knowledge of renewable energy investment and develops a new conceptual framework to guide analyses of policies to support renewables. Past and current trends in the field of renewable energy investment are investigated by reviewing the literature on renewable energy investment linkage with policies, which identifies patterns and similarities in RE investment. This also includes the interview analysis with investors focusing on policies for renewable energy investment. The results from the interview and conceptual analysis show that renewable policies play a crucial role in determining investment in renewable energy sources. The findings from this thesis demonstrate that renewable energy policies increase with a growth of the renewable energy investment in the sector. Finally, the outcomes of this thesis also contribute to the energy economics literature, especially for academic and subsequent research purposes.