European Parliament Library

Who's Going Green and Why? Trends and Determinants of Green Investment, Luc Eyraud, Changchang Zhang, Abdoul Wane, Benedict Clements

This paper fills a gap in the macroeconomic literature on renewable sources of energy. It offers a definition of green investment and analyzes the trends and determinants of this investment over the last decade for 35 advanced and emerging countries. We use a new multi-country historical dataset and find that green investment has become a key driver of the energy sector and that its rapid growth is now mostly driven by China. Our econometric results suggest that green investment is boosted by economic growth, a sound financial system conducive to low interest rates, and high fuel prices. We also find that some policy interventions, such as the introduction of carbon pricing schemes, or "feed-in-tariffs," which require use of "green" energy, have a positive and significant impact on green investment. Other interventions, such as biofuel support, do not appear to be associated with higher green investment
Table Of Contents
Cover; Contents; I. Introduction; II. What Is Green Investment and How Can It Be Measured?; A. Definition and Components of Green Investment; B. Measuring Green Investment; Tables; 1. Structure of Green Investment by Category; III. The Growing Importance of Green Energy Sources; A. Green and Brown Energies; Figures; 1. World Electricity Generation; 2. New Electricity Capacity (World); B. Government Support for Renewables; 3. World Primary Energy Consumption, 2007; 2. Main Policy Instruments; 3. Estimates of Public Support for Renewables
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (41 p.)
Specific Material Designation
Form Of Item

Library Locations

  • EP Library Brussels

    60 rue Wiertz, Brussels, B-1047, BE
  • EP Library Luxembourg

    Rue du Fort Thüngen, Luxembourg, L-1313, LU
  • EP Library Strasbourg

    7 Place Adrien Zeller, Allée du Printemps, Strasbourg, F-67070, FR