The Role of Policy Driven Incentives : A Cross-Country Analysis
This paper presents new global evidence on the key determinants of public-private partnership investment in electricity generated by renewable energy based on a panel data analysis for 105 developing countries over a period of 16 years from 1993 to...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2012/07/16481342/role-policy-driven-incentives-attract-ppps-renewable-based-energy-developing-countries-cross-country-analysis http://hdl.handle.net/10986/11936 |
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okr-10986-11936 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
ABUNDANT RESOURCE ACCOUNTING AGRICULTURAL RESIDUES ALLOCATION OF RISKS APPROACH AVAILABILITY AVAILABILITY OF CREDIT BARRIER BIOGAS BIOMASS BIOMASS CAPACITY BUSINESS ENVIRONMENT CARBON CLEAN ENERGY CLIMATE CLIMATE CHANGE CO2 COAL COGENERATION COGENERATION PLANTS COMPETITION FOR ENERGY COMPETITIVE MARKET CONSTRUCTION COST COST OF CAPITAL COST REDUCTIONS DEBT DEBT MATURITY DEBT SERVICE DEMOCRACY DEMOGRAPHIC DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DIESEL DIESEL FUEL DIFFUSION DISTRIBUTION LOSSES DUMMY VARIABLE ELECTRIC UTILITIES ELECTRICAL OUTPUT ELECTRICITY ELECTRICITY FROM WIND ELECTRICITY GENERATION ELECTRICITY PRICE ELECTRICITY PRODUCTION ELECTRIFICATION EMERGING ECONOMIES EMISSION EMISSIONS ENERGY DEMAND ENERGY GENERATION ENERGY INVESTMENTS ENERGY RESOURCES ENERGY SECURITY ENERGY SOURCE ENERGY SOURCES ENVIRONMENTAL FINANCE ENVIRONMENTAL SUSTAINABILITY EQUAL SHARE EXPLORATION DRILLING FINANCIAL ANALYSIS FINANCIAL CRISES FINANCIAL CRISIS FIXED RATE FOSSIL FOSSIL FUEL FOSSIL FUELS FUEL COST FUEL PRICE GAS GAS PRICES GEOTHERMAL ELECTRICITY GEOTHERMAL ENERGY GEOTHERMAL FLUIDS GEOTHERMAL POWER GEOTHERMAL POWER PLANTS GEOTHERMAL PRODUCTION GEOTHERMAL RESERVOIR GEOTHERMAL RESOURCE GEOTHERMAL RESOURCES GEOTHERMAL TECHNOLOGIES GLOBAL INVESTMENT GOVERNANCE INDICATOR GOVERNANCE INDICATORS GOVERNMENT GUARANTEES GREEN POWER GRID CONNECTION GROWTH IN ENERGY DEMAND HYDRO POWER HYDROPOWER INCOME INCOME LEVEL INFLATION INSTRUMENT INTERNATIONAL BANK INVESTMENT REQUIREMENT IPO JURISDICTIONS KILOWATT HOUR LANDFILL LANDFILL GAS LOAN LOAN GUARANTEES MACROECONOMIC CONTROL MACROECONOMIC VARIABLE MARKET PRICE MARKET PRICES MARKET RISKS MARKET SIZE MARKET STRUCTURES NATIONAL GRID NATURAL GAS OFFSHORE WIND OIL PORTFOLIO POWER POWER DEMAND POWER GENERATION POWER PRODUCER POWER PURCHASE AGREEMENTS POWER SECTOR POWER SYSTEM PRICE OF OIL PRICE VOLATILITY PRIVATE FINANCE PRIVATE INVESTMENT PRIVATE INVESTMENTS PRIVATE INVESTOR PRIVATE INVESTORS PRIVATE SECTOR INVESTORS PUBLIC-PRIVATE PARTNERSHIP RAPID EXPANSION RAPID GROWTH RATE OF RETURN REGIONAL DUMMIES REGULATOR REGULATORS REGULATORY REGIME REGULATORY REGIMES REGULATORY REQUIREMENTS RENEWABLE ELECTRICITY RENEWABLE ENERGIES RENEWABLE ENERGY RENEWABLE ENERGY DEVELOPMENT RENEWABLE ENERGY GENERATION RENEWABLE ENERGY MARKET RENEWABLE ENERGY POLICY RENEWABLE ENERGY PRODUCERS RENEWABLE ENERGY PROJECTS RENEWABLE ENERGY SOURCES RENEWABLE ENERGY SUPPLIERS RENEWABLE ENERGY TECHNOLOGY RENEWABLE ENERGY USE RENEWABLE GENERATION RENEWABLE PORTFOLIO STANDARDS RENEWABLE SOURCES RENEWABLE SOURCES OF ENERGY RENEWABLE TECHNOLOGIES RISK PREMIUM RISK REDUCTION RURAL ENERGY SECURITY CONCERNS SMALL POWER PRODUCERS SOLAR POWER SOLAR THERMAL SOLID BIOMASS SOURCE OF ENERGY SUGAR MILLS SUSTAINABLE ENERGY TARIFF DESIGN TARIFF STRUCTURE TAX TAX BREAK TEMPERATURE TOTAL ELECTRICITY GENERATION TRACK RECORD TRANSMISSION SYSTEM UNEP URBANIZATION VENTURE CAPITALISTS WIND WIND CAPACITY WIND ENERGY WIND FARMS WIND GENERATION WIND GENERATORS WIND POWER WIND PROJECT WIND PROJECTS WIND RESOURCES WIND SPEEDS WORLD DEVELOPMENT INDICATORS |
| spellingShingle |
ABUNDANT RESOURCE ACCOUNTING AGRICULTURAL RESIDUES ALLOCATION OF RISKS APPROACH AVAILABILITY AVAILABILITY OF CREDIT BARRIER BIOGAS BIOMASS BIOMASS CAPACITY BUSINESS ENVIRONMENT CARBON CLEAN ENERGY CLIMATE CLIMATE CHANGE CO2 COAL COGENERATION COGENERATION PLANTS COMPETITION FOR ENERGY COMPETITIVE MARKET CONSTRUCTION COST COST OF CAPITAL COST REDUCTIONS DEBT DEBT MATURITY DEBT SERVICE DEMOCRACY DEMOGRAPHIC DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DIESEL DIESEL FUEL DIFFUSION DISTRIBUTION LOSSES DUMMY VARIABLE ELECTRIC UTILITIES ELECTRICAL OUTPUT ELECTRICITY ELECTRICITY FROM WIND ELECTRICITY GENERATION ELECTRICITY PRICE ELECTRICITY PRODUCTION ELECTRIFICATION EMERGING ECONOMIES EMISSION EMISSIONS ENERGY DEMAND ENERGY GENERATION ENERGY INVESTMENTS ENERGY RESOURCES ENERGY SECURITY ENERGY SOURCE ENERGY SOURCES ENVIRONMENTAL FINANCE ENVIRONMENTAL SUSTAINABILITY EQUAL SHARE EXPLORATION DRILLING FINANCIAL ANALYSIS FINANCIAL CRISES FINANCIAL CRISIS FIXED RATE FOSSIL FOSSIL FUEL FOSSIL FUELS FUEL COST FUEL PRICE GAS GAS PRICES GEOTHERMAL ELECTRICITY GEOTHERMAL ENERGY GEOTHERMAL FLUIDS GEOTHERMAL POWER GEOTHERMAL POWER PLANTS GEOTHERMAL PRODUCTION GEOTHERMAL RESERVOIR GEOTHERMAL RESOURCE GEOTHERMAL RESOURCES GEOTHERMAL TECHNOLOGIES GLOBAL INVESTMENT GOVERNANCE INDICATOR GOVERNANCE INDICATORS GOVERNMENT GUARANTEES GREEN POWER GRID CONNECTION GROWTH IN ENERGY DEMAND HYDRO POWER HYDROPOWER INCOME INCOME LEVEL INFLATION INSTRUMENT INTERNATIONAL BANK INVESTMENT REQUIREMENT IPO JURISDICTIONS KILOWATT HOUR LANDFILL LANDFILL GAS LOAN LOAN GUARANTEES MACROECONOMIC CONTROL MACROECONOMIC VARIABLE MARKET PRICE MARKET PRICES MARKET RISKS MARKET SIZE MARKET STRUCTURES NATIONAL GRID NATURAL GAS OFFSHORE WIND OIL PORTFOLIO POWER POWER DEMAND POWER GENERATION POWER PRODUCER POWER PURCHASE AGREEMENTS POWER SECTOR POWER SYSTEM PRICE OF OIL PRICE VOLATILITY PRIVATE FINANCE PRIVATE INVESTMENT PRIVATE INVESTMENTS PRIVATE INVESTOR PRIVATE INVESTORS PRIVATE SECTOR INVESTORS PUBLIC-PRIVATE PARTNERSHIP RAPID EXPANSION RAPID GROWTH RATE OF RETURN REGIONAL DUMMIES REGULATOR REGULATORS REGULATORY REGIME REGULATORY REGIMES REGULATORY REQUIREMENTS RENEWABLE ELECTRICITY RENEWABLE ENERGIES RENEWABLE ENERGY RENEWABLE ENERGY DEVELOPMENT RENEWABLE ENERGY GENERATION RENEWABLE ENERGY MARKET RENEWABLE ENERGY POLICY RENEWABLE ENERGY PRODUCERS RENEWABLE ENERGY PROJECTS RENEWABLE ENERGY SOURCES RENEWABLE ENERGY SUPPLIERS RENEWABLE ENERGY TECHNOLOGY RENEWABLE ENERGY USE RENEWABLE GENERATION RENEWABLE PORTFOLIO STANDARDS RENEWABLE SOURCES RENEWABLE SOURCES OF ENERGY RENEWABLE TECHNOLOGIES RISK PREMIUM RISK REDUCTION RURAL ENERGY SECURITY CONCERNS SMALL POWER PRODUCERS SOLAR POWER SOLAR THERMAL SOLID BIOMASS SOURCE OF ENERGY SUGAR MILLS SUSTAINABLE ENERGY TARIFF DESIGN TARIFF STRUCTURE TAX TAX BREAK TEMPERATURE TOTAL ELECTRICITY GENERATION TRACK RECORD TRANSMISSION SYSTEM UNEP URBANIZATION VENTURE CAPITALISTS WIND WIND CAPACITY WIND ENERGY WIND FARMS WIND GENERATION WIND GENERATORS WIND POWER WIND PROJECT WIND PROJECTS WIND RESOURCES WIND SPEEDS WORLD DEVELOPMENT INDICATORS Vagliasindi, Maria The Role of Policy Driven Incentives : A Cross-Country Analysis |
| relation |
Policy Research Working Paper; No. 6120 |
| description |
This paper presents new global evidence
on the key determinants of public-private partnership
investment in electricity generated by renewable energy
based on a panel data analysis for 105 developing countries
over a period of 16 years from 1993 to 2008. It aims to
identify the key factors affecting the private
investor's decision to enter renewable-based energy
generation, through a probit analysis and the amount of
investment sunk in this market segment, based on
Heckman's sample selection analysis. One of the key
results of the paper is that the market for renewable-based
energy is strongly driven by supportive policies. Support
policies serve not only to attract the entry of private
investors, but also to determine the level of investment. In
the latter case, its impact is less significant, suggesting
the need over time to revisit the power of the incentive
schemes, as well as the implied allocation of risks between
the public and private sector to ensure that feed-in tariffs
produce the desired amount of investment. In contrast,
broader economy-wide governance factors, including control
for corruption and degree of political competition, are
considered by private investors mainly for taking the
decision to enter into renewable-based generation. This
reinforces the expectation that private investors seem to be
adequately protected against their risks, so that once they
have entered the market, they can accommodate the governance
environment. Private investors in renewable-based energy
also require technical and regulatory certainty about the
availability of renewable-ready transmission resources, if
they are to finance investments. Private investors entering
the market look more at the size of the market rather than
the income level, whereas when determining the level of
investment they assess both the size and
"affordability" level. This raises some concerns
on the sustainability of support mechanisms and their
financing, particularly when the incremental costs implied
by renewable-based generation are passed through to consumers. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Vagliasindi, Maria |
| author_facet |
Vagliasindi, Maria |
| author_sort |
Vagliasindi, Maria |
| title |
The Role of Policy Driven Incentives : A Cross-Country Analysis |
| title_short |
The Role of Policy Driven Incentives : A Cross-Country Analysis |
| title_full |
The Role of Policy Driven Incentives : A Cross-Country Analysis |
| title_fullStr |
The Role of Policy Driven Incentives : A Cross-Country Analysis |
| title_full_unstemmed |
The Role of Policy Driven Incentives : A Cross-Country Analysis |
| title_sort |
role of policy driven incentives : a cross-country analysis |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2012/07/16481342/role-policy-driven-incentives-attract-ppps-renewable-based-energy-developing-countries-cross-country-analysis http://hdl.handle.net/10986/11936 |
| _version_ |
1764418545607770112 |
| spelling |
okr-10986-119362021-04-23T14:02:58Z The Role of Policy Driven Incentives : A Cross-Country Analysis Vagliasindi, Maria ABUNDANT RESOURCE ACCOUNTING AGRICULTURAL RESIDUES ALLOCATION OF RISKS APPROACH AVAILABILITY AVAILABILITY OF CREDIT BARRIER BIOGAS BIOMASS BIOMASS CAPACITY BUSINESS ENVIRONMENT CARBON CLEAN ENERGY CLIMATE CLIMATE CHANGE CO2 COAL COGENERATION COGENERATION PLANTS COMPETITION FOR ENERGY COMPETITIVE MARKET CONSTRUCTION COST COST OF CAPITAL COST REDUCTIONS DEBT DEBT MATURITY DEBT SERVICE DEMOCRACY DEMOGRAPHIC DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DIESEL DIESEL FUEL DIFFUSION DISTRIBUTION LOSSES DUMMY VARIABLE ELECTRIC UTILITIES ELECTRICAL OUTPUT ELECTRICITY ELECTRICITY FROM WIND ELECTRICITY GENERATION ELECTRICITY PRICE ELECTRICITY PRODUCTION ELECTRIFICATION EMERGING ECONOMIES EMISSION EMISSIONS ENERGY DEMAND ENERGY GENERATION ENERGY INVESTMENTS ENERGY RESOURCES ENERGY SECURITY ENERGY SOURCE ENERGY SOURCES ENVIRONMENTAL FINANCE ENVIRONMENTAL SUSTAINABILITY EQUAL SHARE EXPLORATION DRILLING FINANCIAL ANALYSIS FINANCIAL CRISES FINANCIAL CRISIS FIXED RATE FOSSIL FOSSIL FUEL FOSSIL FUELS FUEL COST FUEL PRICE GAS GAS PRICES GEOTHERMAL ELECTRICITY GEOTHERMAL ENERGY GEOTHERMAL FLUIDS GEOTHERMAL POWER GEOTHERMAL POWER PLANTS GEOTHERMAL PRODUCTION GEOTHERMAL RESERVOIR GEOTHERMAL RESOURCE GEOTHERMAL RESOURCES GEOTHERMAL TECHNOLOGIES GLOBAL INVESTMENT GOVERNANCE INDICATOR GOVERNANCE INDICATORS GOVERNMENT GUARANTEES GREEN POWER GRID CONNECTION GROWTH IN ENERGY DEMAND HYDRO POWER HYDROPOWER INCOME INCOME LEVEL INFLATION INSTRUMENT INTERNATIONAL BANK INVESTMENT REQUIREMENT IPO JURISDICTIONS KILOWATT HOUR LANDFILL LANDFILL GAS LOAN LOAN GUARANTEES MACROECONOMIC CONTROL MACROECONOMIC VARIABLE MARKET PRICE MARKET PRICES MARKET RISKS MARKET SIZE MARKET STRUCTURES NATIONAL GRID NATURAL GAS OFFSHORE WIND OIL PORTFOLIO POWER POWER DEMAND POWER GENERATION POWER PRODUCER POWER PURCHASE AGREEMENTS POWER SECTOR POWER SYSTEM PRICE OF OIL PRICE VOLATILITY PRIVATE FINANCE PRIVATE INVESTMENT PRIVATE INVESTMENTS PRIVATE INVESTOR PRIVATE INVESTORS PRIVATE SECTOR INVESTORS PUBLIC-PRIVATE PARTNERSHIP RAPID EXPANSION RAPID GROWTH RATE OF RETURN REGIONAL DUMMIES REGULATOR REGULATORS REGULATORY REGIME REGULATORY REGIMES REGULATORY REQUIREMENTS RENEWABLE ELECTRICITY RENEWABLE ENERGIES RENEWABLE ENERGY RENEWABLE ENERGY DEVELOPMENT RENEWABLE ENERGY GENERATION RENEWABLE ENERGY MARKET RENEWABLE ENERGY POLICY RENEWABLE ENERGY PRODUCERS RENEWABLE ENERGY PROJECTS RENEWABLE ENERGY SOURCES RENEWABLE ENERGY SUPPLIERS RENEWABLE ENERGY TECHNOLOGY RENEWABLE ENERGY USE RENEWABLE GENERATION RENEWABLE PORTFOLIO STANDARDS RENEWABLE SOURCES RENEWABLE SOURCES OF ENERGY RENEWABLE TECHNOLOGIES RISK PREMIUM RISK REDUCTION RURAL ENERGY SECURITY CONCERNS SMALL POWER PRODUCERS SOLAR POWER SOLAR THERMAL SOLID BIOMASS SOURCE OF ENERGY SUGAR MILLS SUSTAINABLE ENERGY TARIFF DESIGN TARIFF STRUCTURE TAX TAX BREAK TEMPERATURE TOTAL ELECTRICITY GENERATION TRACK RECORD TRANSMISSION SYSTEM UNEP URBANIZATION VENTURE CAPITALISTS WIND WIND CAPACITY WIND ENERGY WIND FARMS WIND GENERATION WIND GENERATORS WIND POWER WIND PROJECT WIND PROJECTS WIND RESOURCES WIND SPEEDS WORLD DEVELOPMENT INDICATORS This paper presents new global evidence on the key determinants of public-private partnership investment in electricity generated by renewable energy based on a panel data analysis for 105 developing countries over a period of 16 years from 1993 to 2008. It aims to identify the key factors affecting the private investor's decision to enter renewable-based energy generation, through a probit analysis and the amount of investment sunk in this market segment, based on Heckman's sample selection analysis. One of the key results of the paper is that the market for renewable-based energy is strongly driven by supportive policies. Support policies serve not only to attract the entry of private investors, but also to determine the level of investment. In the latter case, its impact is less significant, suggesting the need over time to revisit the power of the incentive schemes, as well as the implied allocation of risks between the public and private sector to ensure that feed-in tariffs produce the desired amount of investment. In contrast, broader economy-wide governance factors, including control for corruption and degree of political competition, are considered by private investors mainly for taking the decision to enter into renewable-based generation. This reinforces the expectation that private investors seem to be adequately protected against their risks, so that once they have entered the market, they can accommodate the governance environment. Private investors in renewable-based energy also require technical and regulatory certainty about the availability of renewable-ready transmission resources, if they are to finance investments. Private investors entering the market look more at the size of the market rather than the income level, whereas when determining the level of investment they assess both the size and "affordability" level. This raises some concerns on the sustainability of support mechanisms and their financing, particularly when the incremental costs implied by renewable-based generation are passed through to consumers. 2012-12-07T18:30:03Z 2012-12-07T18:30:03Z 2012-07 http://documents.worldbank.org/curated/en/2012/07/16481342/role-policy-driven-incentives-attract-ppps-renewable-based-energy-developing-countries-cross-country-analysis http://hdl.handle.net/10986/11936 English en_US Policy Research Working Paper; No. 6120 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |