Assessing the Impact of Renewable Energy Policies on Decarbonization in Developing Countries
This study offers the first consistent attempt to identify how energy sector decarbonization policies have affected the energy mix over the past four decades across more than 100 developing countries. It applies systematic regression analysis to five energy sector decarbonization outcomes and more than 75 policy instruments aggregated into seven policy packages. Combining instrumental variables with country interactions and country and time fixed effects in regional panels helps address potential endogeneity issues. Only a handful of energy policy packages significantly affect the decarbonization of developing countries' energy mix, and the packages more often achieve a negligible or opposite result than intended three years after implementation. Policies that address counterparty risk have the highest immediate effects. Effects of renewable policies on various decarbonization outcomes improve slightly five and seven years after their implementation.
| Main Authors: | , , |
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| Format: | Working Paper biblioteca |
| Language: | English English |
| Published: |
World Bank, Washington, DC
2023-03-01T21:52:43Z
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| Subjects: | DECARBONIZATION POLICY IMPACT, DEVELOPING COUNTRY ENERGY POLICIES, ENERGY MIX, RENEWABLE ENERGY POLICY IMPACT, RISE INDEX, RENEWABLE ENERGY POLICY, |
| Online Access: | http://documents.worldbank.org/curated/en/099802502282336539/IDU0ed74462202af9043e70ab2309774e83a9d93 https://worldbank7-prod.atmire.com/handle/10986/39489 |
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| Summary: | This study offers the first
consistent attempt to identify how energy sector
decarbonization policies have affected the energy mix over
the past four decades across more than 100 developing
countries. It applies systematic regression analysis to five
energy sector decarbonization outcomes and more than 75
policy instruments aggregated into seven policy packages.
Combining instrumental variables with country interactions
and country and time fixed effects in regional panels helps
address potential endogeneity issues. Only a handful of
energy policy packages significantly affect the
decarbonization of developing countries' energy mix,
and the packages more often achieve a negligible or opposite
result than intended three years after implementation.
Policies that address counterparty risk have the highest
immediate effects. Effects of renewable policies on various
decarbonization outcomes improve slightly five and seven
years after their implementation. |
|---|