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

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
Bibliography note
Includes bibliographical references
international or intergovernmental publication
Literary Form
non fiction
Main title
Who's Going Green and Why? Trends and Determinants of Green Investment
Nature of contents
Responsibility statement
Luc Eyraud, Changchang Zhang, Abdoul Wane, Benedict Clements
Series statement
IMF Working Papers
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 Renewables4. Green Component of Economic Stimuli as of February 2011IV. What Are the Recent Trends in Green Investment?; A. Renewable Energy; 5. Renewable Green Investment, 2000-2010; 6. Renewable Green Investment by Region, 2004-2010; B. Hydro and Nuclear Power; 7. Nuclear Installed Capacity, 1980-2008; 8. Nuclear Investment by Region, 1980-2009; V. What Drives Green Investment?; A. Theoretical Determinants of Green Investment; 9. Installed Hydroelectric Capacity, 1980-2008; B. Empirical Model and Econometric Results; 4. Green Investment Determinants; VI. Conclusion and Policy Implications; Appendices1. Green Investment in Economic and Business Publications2. The New Energy and Finance Database; 3. Energy, Electricity, Power, and Capacity; Box; 1. Selected Renewable Technologies: Terminology and Key Features; 4. Key Renewable Technologies: Definition and Trends; Appendix Figures; 1. Renewable Green Investment by Technology, 2004-2010; 5. Research and Development in Green Technologies; 2. Public and Private R&D in the World; 6. Country List and Data Sources; Appendix Table; 1. List of Variables, Definitions, and Sources; References
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