THE FINANCIAL SECTOR AND RENEWABLE ENERGY DEVELOPMENT IN NON-OECD COUNTRIES: AN EMPIRICAL ANALYSIS

Abstract

This paper examines the role of the financial sector in the development of renewable energy generation in non-OECD countries. A panel dataset of 156 countries is constructed from 1980-2006. The estimations suggest a positive impact of commercial banking on non-hydro energy production such as wind, solar and geo-thermal. None of the equity market indicators suggest a positive relationship. There is also strong evidence that the Kyoto Protocol has had a positive impact on renewable energy development