I want to estimate the effect of public policies supporting renewables on the share of renewables in a countries energy supply (CRES, dependent variable). I added some control variables (GDP; commodity prices, energy dependence etc.). My question is how to construct a variable for Energy Policies and Measures. My database are those measures and policies listed at IRENA/IEA. They distinguish between 6 types of policies/measures ( (1) Economic instruments, (2) Information and Education, (3) Policy Supports, (4) Regulatory Instruments, (5) R&D and (6) Voluntary.
My approach
(1) Either creating a dummy variable which takes on the value 1 if the country has for example more /equal to 20 policies in each category (rule of thumb)
(2) Create a continous variable, attributing the value to each measure, however in this case I assume that each measure has the same weight
Any suggestions/ideas/ contributions are highly appreciated!
Hello Dear,' Take look the case of Costa Rica and Sweden as well, both of them can help you in your paper. About the equation i suggest the a basic one:
Y(output) = c + Green( 1= invest renewable energy, 0=others) +...
Y = c1 + c2(RenewableEnergy type 1)...+cn(RenewableEnergy type n-1) +cn+1*(Gas)+cn+2 *Cool +.....
However you must be sure is not any correlation between your variables.
Good Luck
Simply adding up the number of policies is not going to give you a good measure of the size or extent of policy. You need some measure of intensity as well. As an example a 50% subsidy to renewables and a 0.1% subsidy would both get a count of '1' in your approach. I know this counting policies is quite common (e.g. Zhao, Yong, Kam Ki Tang, and Li-li Wang. "Do renewable electricity policies promote renewable electricity generation? Evidence from panel data." Energy Policy 62 (2013): 887-897. who use the IEA data), but you would do better to find intensity information as well.
You could consider the existence of Renewable Energy Targets (RETs) and FITs(feed in tariffs) as independent variables dummy variables. They sure should show an impact on the promotion of renewable. In most countries these two policies are most prevalent. One would also want to include the existence of fax benefits as another independent variable as many countries do have the same. Anything else is assumed to be captured by the error term.
In essence it may not be possible to just have one independent variable indicating public policy forr renewables.
Hope this helps
By a law of waste disposal in case of Japan, proper processing responsibility is imposed on each discharge enterpriser concerned on industrial wastes.
When a discharge enterprise separate well acccording to type, a possibility that a good part of waste will be valuables comes out. Even when it is not valuables, the processing cost becomes little. These will be an incentive to reduce the charge which will pay a processor of waste. Each discharge enterpriser makes an effort toward separating thoroughness.
The processing enterprise of industrial wastes has to get permission from a prefecture government in Japan. The waste processing industry is also competition industry at the same time. Through competition between the company in the same line of business each processor can request to make a revival raw material which fits in with a market efficiently.
Each processor does the effort to make something good for selling a revival raw material profitably. But, to the case that waste processors make a high-quality revival raw material, most of discharge enterprisers do not have the interest so much. When they are the processers who do the proper processing which does not violate the law, inexpensive processers of the processing charge tends to be chosen.
As a result of the regulation and the competition, the recycling rate in Japan becopmes a high level, and when a manufacturer also does mix virsin material with a revival raw material at some rate, the manufacturer which lowers the price of finished goods has competitive power in its hand.
Article Public policies to support the development of renewable ener...
https://www.nrel.gov/docs/fy09osti/45971.pdf
http://cdn.intechopen.com/pdfs/43656/InTech-On_the_public_policies_supporting_renewables_and_wind_power_overcapacity_insights_into_the_european_way_forward.pdf
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