The Impact of Government Policies in the Renewable Energy Investment: Developing a Conceptual Framework and Qualitative Analysis

Nurcan Kilinc Ata^a

^aEconomics Division, University of Stirling, Rm. 3X10 Cottrell Building, FK9 4LA, UK

Tel.: +44 759 528 6960; fax: +44 178 646 7469.

E-mail addresses: nurcan.kilincata@stir.ac.uk,  nurcankilinc@yahoo.com

Accepted 15 December 2014

Abstract

Investments in renewable energy sources are regarded with increasing interest as an effective means toward energy independence and stimulate economic growth. Numerous policies, therefore, are implemented to promote renewable sources. To shed light on this association, this paper discusses the relationship between renewable energy policies and renewable investment using a case study approach. In this paper I examine the decision-making policy process underlying RE investments. The aim of this paper is to emphasise the selections for renewable energy investment, to shed new light on RE investment decisions, and how they are influenced by renewable energy policies. This paper proposes a conceptual framework and qualitative analysis to understand the structural factors affecting the investors’ decisions as well as the linkage between renewable energy policies and investment in the case study countries of United Kingdom, Turkey and Nigeria. The results suggest that renewable policies increases growth in the RE investment in the sector.

Keywords: Renewable energy, Investment, Renewable energy policy