What Determines Energy Production from Renewable Sources?

Abstract

Investment in renewable energy is an investment in our future. This paper analyzes the determinants of production of energy from renewable sources in Europe, the Former Soviet Union, and the Middle East and North Africa. It explores the major challenges each of these regions faces in moving towards a more environmentally friendly generation and use of energy. We find that specific country and regional characteristics, together with the energy needs and overall energy profile of a country, have a significant effect on its electricity production from renewable sources. We do not find evidence that the overall quality of governance promotes renewables.