Renewable energy investments and feed-in tariffs: Firm-level evidence from Southeast Asia11An earlier version of the paper was presented at CUE2023

Dina Azhgaliyeva, Hai Le, Resi Ong Olivares and Shu Tian

Applied Energy, 2024, vol. 374, issue C, No S0306261924013692

Abstract: This study examines the impact of feed-in tariffs (FITs) on promoting investment in renewable energy (RE) in Southeast Asia. Using firm-level data from six Southeast Asian economies from 2012 to 2021, we find robust evidence that FITs substantially boosted firms' investment in RE. Moreover, the impact of FITs on RE investment in Southeast Asian economies varies across different RE technologies and firm characteristics. We find that the significant and positive impact of FITs on RE is largely driven by solar FITs on promoting investment in solar RE, but such effects are insignificant for other RE technologies including wind and biomass, geothermal, and hydro. Further, the impact of FITs on RE investments is more pronounced among younger and smaller firms than in older and larger firms. Our empirical evidence has implications for policy makers to design FITs in a cost-effective manner to promote more private sector investment in RE.

Keywords: Renewable energy; Feed-in tariff; Green investment; Southeast Asia; Firm level (search for similar items in EconPapers)
JEL-codes: G32 G38 Q20 Q28 Q42 Q53 Q58 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1016/j.apenergy.2024.123986

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