Investments in renewable energy sources in countries grouped by income level

In this article, we individuate the drivers promoting the investments in renewable energy sources (RESs) and the divergences on the basis of development stage of the countries, using a heterogeneous panel of countries. To address these issues, we employ a dynamic panel analysis of the renewable investments in a large sample of 60 countries with distinct economic and social structures, in the years between 1980 and 2008. In order to analyze the expected divergences in the drivers of investment in renewable sources we split the sample into three different sub-samples, following the classification proposed by World Bank. Results confirm that key factors promoting investments in RESs vary according to groups of countries considered. Poor countries show a strong interest in renewable energy, specially for the incentives given by the international organizations. Countries with higher income increase investments in renewable sources in order to reduce the dependence on other countries.