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Incentives and Installed Wind Capacity The Commission examined the relationship between FITs and installed wind capacity in 54 countries from 2006 to 2010. Data on FITs were drawn from the Renewable Energy Policy Network for the 21st Century’s annual reports and supplemented with additional research, while data on installed wind capacity were drawn from the World Wind Energy Association’s World Wind Energy Reports. The analysis controlled for gross domestic product (GDP) per capita, electric power consumption per capita, oil rents as a percentage of GDP,60 and net energy imports (all from the World Bank’s World Data Indicators). Summary statistics are presented in table 6.2. TABLE 6.2 Summary statistics Variable Mean Std. Dev. Min 6,378 0 13,188 578 4,928 459 119.371 –736.16 4.961 0 0.488 0 Max 44,733 56,285 25,175 97.565 31.041 1 Installed wind capacity (MW) GDP per capita Electric power consumption (KWH per capita) Net energy imports (percentage of energy use) Oil rents (percentage of GDP) FIT s Source: REN21; WWEA; World Bank; USITC calculations. 2,572 15,747 6,586 8.958 2.188 0.614 FITs were time-varying, as several countries adopted FITs during the period, and were represented using a binary variable: “1” if the country in question employed a FIT that year, and “0” if not. Using this dummy variable conceals the wide variety in the significance and design of FITs across countries, so the coefficient on the FIT variable identifies the effects of FITs per se—that is, the significance of simply having a policy called a FIT, regardless of its details or magnitude. The regression used year dummy variables and controlled for country fixed effects (which includes the natural wind resource endowments of countries). Results are presented in table 6.3. For countries in this sample, having a FIT policy was correlated with an additional 1,856 MW of installed wind capacity. The correlation was significant at the 5 percent level. Other variables were not significant. (These findings were roughly consistent with other estimations; see Jenner 2012 for an overview of empirical studies of FITs.) 60 Oil rents are the difference between the value of crude oil production at world prices and the total costs of production. 6-13PDF Image | Renewable Energy and Related Services: Recent Developments
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