Analysis of renewable energy consumption : a panel data evidence from the OECD countries

Abstract: The share of renewables in the global energy mix needs to increase or we will never reach the environmental targets. In 2050 the world will use 80% more energy than it does today and without policy interventions, the fossil-fuel based energy in the global energy mix will remain at 85%. Under this circumstance, increasing the share of renewables in the total energy consumption is most critical to achieve the target set by the Paris Agreement to limit the long-time increase in global temperature below two degrees Celsius. So what is it that affects the use of renewables? In this thesis, I examine factors that affects the share of renewables in the global energy mix in OECD countries using the panel data for the period 1995-2014. My results reveal that carbon dioxide emission,total energy use, GDP per capita and an increasing urban population have a negative effect on the share of renewable energy in the total energy mix. On the other hand, total renewable energy supply and oil price have a significant positive effect on the share of renewable energy consumption.