Which renewable energy policies are effective for deployment? Empirical analysis of 167 countries

This study quantitatively analyzes the effects of each renewable energy policy in the power sector to derive policy implications. Data from 167 countries from 2005 to 2019 were collected and empirically analyzed to compare performance of renewable energy policies. The dependent variables were divided into total or variable renewable energy sources. For the quantitative analyses, the random effect Tobit model was set as the standard model, considering the censored characteristics of countries with zero dependent variables while the random effect panel model verified the robustness. The main variables of interest were the policy variables feed-in tariff/feed-in premium, renewable portfolio standard (RPS), and the auction system. The control variables were the share of manufacturing, gross domestic product per capita, degree of financial development, natural resource zones, connection to overseas grids, carbon dioxide emissions, and national area. The results suggest that the diffusion effect of the auction system is high throughout, with the RPS system having a limited effect. They imply that an auction system introduction, securing profit stability for business operators can enhance the supply of renewable energy. The implementation of these findings by policymakers in each country could lead to institutional improvements.