An Empirical Investigation of Renewable Energy Investment in Europe
Presentation
Overview
Overview
Description
Each year, approximately 6.5 million premature deaths are due to CO2 emissions and global warming, (World Energy Outlook 2015). Most governments have agreed to decrease their reliance on traditional energy and use more renewable energy. In the 21st century, global investment in renewable energy started to increase substantially and reached a high in both developed and developing countries, going from $1,360 to $5,100 billion in the last decade, (IPCC, 2011). In this study, we examine the factors that affect investments in renewable energy in France, Germany, Italy, Spain, and United Kingdom (BIG5) from 2005 to 2014. The empirical results show that Greenhouse gas emissions, environmental tax, energy consumption and fossil fuel support do not significantly affect investments in renewable energy. The price of oil has a significant and positive relationship on renewable energy investments. The change in GDP, unemployment and exchange rates have a significant negative relationship to investments in renewable energy.
