Factors Influencing Renewable Energy Generation in Developed and Developing Countries

Building a carbon-neutral economy with the use of clean and renewable energy sources is extremely important due to the necessity of climate change consequences alleviation. This study explores factors affecting the transition to non-hydro renewable energy sources in high-, middle- and low-income economies. The growth of renewable energy considers in term of non-hydro renewable electricity generated and its share in total electricity supply. The results demonstrate that the leading factor of non-hydro renewable power generation is rising oil price, while a country’s energy dependency indicates as a primary barrier towards green energy future. Economic development is revealed to have a feeble impact on renewable energy adoption. The effect of trade openness and the level of CO2 emissions on renewable power growth depends on the income group and chosen model specification. Finally, gas and coal prices are found to be a complementary energy sources in addition to non-hydro renewable electricity generation.