Divergences in the determinants of investments in renewable energy sources: hydroelectric vs. other renewable sources.

In this paper, we analyze the drivers promoting the investments in renewable energy sources (RES) and the divergences on the basis of generation sources (hydroelectric and other renewable sources). To address these issues, a dynamic panel analysis of the renewable investments in a sample of 32 countries (Organisation for economic co-operation and development and Brasil, Russia, India, China and South Africa) with distinct economic and social structures, in the years between 2000 and 2008, is proposed. Results confirm that key factors promoting investments in RES vary according to generation sources considered. Investments in hydroelectric sources contribute to improve the environmental conditions, while the other sources are not significant. The policies are useful to support the investments in renewable energy. Results also show that share of nuclear and thermal electricity generation depress the investments in renewables.