Is Feed-in Tariff forever? An Empirical Analysis

Abstract

The aim of this study was to analyze the key–factors behind the adoption of Feed– in Tariff and the functional relationship between Gross Domestic Product, Carbon Dioxide emissions and the Share of Renewable (non-hydroelectric) electricity generation. To address these issues a panel binary regression model has been estimated in a comprehensive sample of 60 countries with different economic structure over the period 1980–2008. We control for variables for socioeconomic, environmental and policy characteristics. Results showed that factors included in the model were relevant for the policy decision to adopt Feed–in Tariff and that they are linked with this by a nonlinear relationship. By the analysis of the results can be demonstrate that Feed-in Tariff is not forever. FiT, in fact, is an important policy to incentive the RES generation, but it reaches a turning point in which should be revise, or eliminate, from the promotion policies.