Authors
ABSTRACT
Recognizing the impact of climate change, global leaders joined in the race to reduce emissions, putting the renewable energy (RE) sector at the center of sustainable development. As a result, RE policies like feed-in tariff (FIT) are being implemented worldwide. This study conducts a robust assessment of FIT’s effect on RE production (REP) by applying fixed effects and Feasible Generalized Least Squares Models with Instrumental Variable approach on an annual panel dataset spanning 1996-2021. The results show that FIT stimulate REP while the effect of economic growth on RE industry still aligns with the Environmental Kuznets Curve Hypothesis. The analysis also suggests that economic globalization, financial institution development, and regulatory quality are crucial factors influencing FIT effectiveness in promoting REP. These findings highlight the importance of tailoring FIT policies according to the country’s context to expedite sustainable energy development.
