Renewable Energy Subsidy Shocks, Energy Governance Structures and Renewable Energy Adoption: A Global Panel Analysis

Zhao Li

Abstract


This study examines the impact of renewable energy subsidy shocks (RESS) on the adoption of renewable energy share (RES) while taking into account the significance of energy policy transparency. Utilizing panel data from 179 countries (1970–2018) and system GMM estimation, the findings indicate that RESS substantially enhances RES, with more pronounced effects in nations characterized by greater transparency, executive limitations, and political rivalry. These results show that renewable subsidies work better when institutions are open and well-run, which is different from what earlier studies said about unclear governance effects. Policy implications indicate that subsidy programs ought to be integrated with institutional reforms, encompassing transparency platforms, autonomous regulatory agencies, and mechanisms for market competition. International development initiatives should emphasize governance capacity-building in conjunction with financial aid to facilitate sustainable energy transitions.


Keywords


RESS, RES, energy policy transparency, environmental sustainability, governance structures, dynamic panel data, system GMM

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References


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