Panel data analysis for renewable energy investment determinants in Europe

This study is an empirical approach to understand the determinants of renewable energy (RES) investment in European Union (EU-27) through panel data study over the period 1995 to 2011. Random effect panel data modelling technique was used to understand the variables that affect solar and wind energy investments in EU-27. Results suggest that the strong regulation perception plays negative role in the solar energy investment, and lower sunshine hours lead to higher wind investment.