Finance for renewable energy: an empirical analysis of developing and transition economies
Open access
Author
Date
2010-06Type
- Journal Article
ETH Bibliography
yes
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Abstract
This paper examines the role of the financial sector in renewable energy (RE) development. Although RE can bring socio-economic and environmental benefits, its implementation faces a number of obstacles, especially in non-OECD countries. One of these obstacles is financing: underdeveloped financial sectors are unable to efficiently channel loans to RE producers. The influence of financial sector development on the use of renewable energy resources is confirmed in panel data estimations on up to 119 non-OECD countries for 1980–2006. Financial intermediation, in particular commercial banking, has a significant positive effect on the amount of RE produced, and the impact is especially large when we consider non-hydropower RE such as wind, solar, geothermal and biomass. There is also evidence that the development of the RE sector has picked up significantly in the period since the adoption of the Kyoto Protocol. Show more
Permanent link
https://doi.org/10.3929/ethz-b-000020740Publication status
publishedExternal links
Journal / series
Environment and Development EconomicsVolume
Pages / Article No.
Publisher
Cambridge University PressOrganisational unit
03635 - Bretschger, Lucas (emeritus) / Bretschger, Lucas (emeritus)
Related publications and datasets
Is new version of: https://doi.org/10.3929/ethz-a-005868918
Notes
It was possible to publish this article open access thanks to a Swiss National Licence with the publisherMore
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ETH Bibliography
yes
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