Environmental, generation and policy determinants of feed-in tariff

Abstract

In this paper we analyze the key-factors behind the adoption of the Feed-in Tariff. We propose and test two regression models for binary data: a pooling specification and a panel one. We employ a comprehensive sample of 60 countries with distinct economic structures over the period 1980–2008. Economics, environmental and generation factors are used as regressors and results demonstrate that these factors are relevant for the policy decision to adopt the Feed-in Tariff. Furthermore, the panel specification appears a better specification, in a such heterogeneous context, than the classical pooled specification.