Eleventh International Conference on Climate Change: Impacts & Responses

Abstract

Investment in renewable energy is an investment in our future. However, not every country in the world spends nearly enough on environmentally sustainable energy – either because there are not enough financial resources, or because there is not enough political will in the country to do so. This research attempts to explore what are the determinants of investment in renewable energy in both developed and developing countries, and what are the major constraints each of these types of countries may face in moving towards a more environmentally friendly generation and use of energy. The paper looks for evidence whether country performance indicators (GDP, GDP per capita, FDI), together with governance indicators (Control of Corruption, Government Effectiveness, Political Stability and Absence of Violence/Terrorism, Regulatory Quality, and Rule of Law) and the current energy profile of a country have an impact on investment in clean energy.