• Energy Research

In this paper, we provide an in-depth analysis of factors determining energy import demand of EU countries. We suggest a novel approach to study the role of renewable versus non renewable energy sources in shaping the demand for energy imports. The aim of the paper is twofold. First, we provide a comprehensive analysis of the EU energy market structure using country-by-country I–O tables to show the rate of interdependency between EU member states in terms of renewable and non renewable energy flows. Second, we investigate on the role of renewable energy sources in reducing energy dependency in EU countries. The econometric analysis uses data from 26 EU countries observed between 2007 and 2016 available from the Eurostat energy statistics database. The descriptive analysis of I–O electricity tables shows some degree of heterogeneity between countries in terms of energy in- and out-flows. Such heterogeneous market structure suggests the use of panel models in the econometric analysis. Moreover, a lasso regression method has been employed for variables selection to avoid the collinearity. The results show that benefits may arise from replacing energy imports with domestic energy production and from reducing energy dependency rate. Moreover, if import substitution occurs with domestic renewable energy sources additional positive effects are produced in terms of either energy dependency, energy security and sustainable development.

Abstract This paper investigates on the determinant factors that drive the Italian regions toward a sustainable development path and evaluates the effectiveness of European Regional Development incentives in promoting investments in renewable energy sources (RES). Starting from the consideration that there are spillover effects between similar regions, first we identify the factors that capture these similarities, then we use them to evaluate their relevance in determining the success of the investments in RES. An econometric analysis, based on the use of spatial panel specification model, is implemented to support the hypotheses. Two important results emerge from the study. The first is the identification of regional determinants of RES production, that are driven by the similarities between regions, and that can be interpreted as guidelines in the policy choices in support of investments. The second is the lack of effectiveness of the incentives in support of RES. Results indicate that the capacity of some regional governments to direct the funds allocated by the central government or European Commission towards efficient production of renewable energy is likely limited, and these incentives have been undone.

In this paper we analyze the factors behind the adoption of feed-in-tariff and predict the probabilities that OPEC members adopt this policy incentive in the next years in order to promote the investments in renewable energy sources and reduce the environmental impact of the energy sector. We estimate a panel probit model to a set of 60 countries using annual data covering the period 1980–2008. We employ the binary time series of adoption of the feed-in-tariff as outcome variable and control for a set of economics, environmental and generation factors. Results demonstrate that all the factors are relevant to predict the probabilities and, furthermore, in most of the OPEC members the probabilities to adopt the feed-in-tariff are increasing over the time.

Abstract The aim of this paper is to analyze the factors determining the choice of energy policy setting in favor of renewable energy sources. We investigate if such determinants are different between countries at different stage of development. Finally, we study if the adoption of green energy policies is characterized by complementary or substitution effects. Our analysis aims at responding at two research questions: what are the factors influencing a country's choice for a specific type of energy policy? Is it possible to identify either complementary or substitute policy interventions based on a country's level of economic development? Moreover, are developing systematically different from developed countries in manage public and private resources for renewable energies? The empirical analysis employs a panel probit model estimated over a sample of 56 countries observed between 2004 and 2011. The results show that while context variables have the same impact in developed and developing countries, public operational variables play a different role. Governments in richer countries are bound to play only a role of an arbiter. On the contrary, governments of developing countries are more directly involved in the management of energy policies. Hence, a greater impact is recognized to policies with direct involvement of the government.

Abstract In this paper we analyze the factors behind the adoption of Feed–in Tariff and we estimate the probabilities that countries not yet adopted the FiT will propose it under different scenario hypotheses. We estimate a panel probit model to a set of 43 countries using annual data covering the period 1980–2008. We employ the binary time series of adoption of the Feed–in–Tariff as outcome variable and control for a set of economics, environmental and generation factors. Results demonstrate that adoption of FiT depends by various factors. Furthermore, we highlights that one of the main factors is the economic growth. The frequency with which the developed countries adopt the FiT is significantly higher than in developing countries and the probability to adopt FiT increases as income grows up.

In this study, we investigate the path toward cleaner generation systems based on the forecast of renewable production diffusion in developing and developed countries. We analyze the factors that affect investments in RES generation and are able to explain the mid-term diffusion of renewable energy sources. This empirical analysis is performed on a large dataset of 129 countries and 32 variables that are observed during 1995–2011. Because of the large number of variables and their high degree of collinearity, the first step of the analysis was implementing a Dynamic Factor Analysis to extract factors that explain the majority of the variation of the original variables. In the second step, we determine the key factors that promote RES investments by using a panel regression model. Then, model estimates are used to determine out-of sample predictions. The results of the empirical analysis are separated into developed and developing countries according to the World Bank income classification. All the countries increase their share of RES generation in the next year but with different growth rates. Developing countries invest less than developed countries and prefer traditional generation sources. In developing countries, investments are enhanced by international financial aid. Conversely, developed countries demonstrate greater environmental awareness and, in many cases, incentivize the diffusion of green generation. However, certain developed countries prefer to invest less in renewable energies because they are tied to an economic system that is based on fossil fuels.

Abstract Small Island Developing States (SIDS) are generally considered highly vulnerable to climate change because they suffer from most common environmental problems due to their smallness, remoteness and exposure to natural hazards, though they contribute less to climate change. However, international cooperation can improve the negative impacts of climate change by incentivizing adaptation policies. The vulnerability assessment becomes crucial because it can be used to allocate the international cooperation resources targeted to adaptation plans. The aim of this paper is to assess of the vulnerability in Small Island Developing States. Using a comprehensive dataset including 32 variables, we synthetize the vulnerability with a composite indicator. Then, we analyze the vulnerability’s dynamics over time from 2009 to 2014. Lastly, we explore the dimensions of vulnerability to assess those that have a greater weight on overall vulnerability. Our findings show that the vulnerability of Small Island Developing States is partly driven by common characteristics, such as isolation and extreme exposure to the effects of climate change, but the degree of vulnerability of identified dimensions is different among countries. Our results give indications to better target development aid, giving suggestions on the more relevant dimensions for action to reduce the vulnerability of each country.

Abstract This aim of the paper is to investigate on the strength of EU renewable energy policies and of internal barriers to energy investments. Using a novel approach based on spatial econometric methods, the paper contributes to the debate on the effectiveness of policies supporting renewable energy investments in the EU member states. The empirical analysis is based on estimates from spatial econometric models that combines independent variables with a weighting scheme of trade linkages between member states. It allows to show how trade relationships can play a role in shaping green energy policies. In fact, technological skills are transferred together with goods and services, trade flows represent an exogenous factor correlated with green investments.