Wind power subsidies: Fueling long-term renewable share but slowing short-term progress? An empirical study of OECD countries

Sadiq-Zada E. R.

Electricity Journal, vol.38, no.3, 2025 (ESCI, Scopus) identifier

  • Nəşrin Növü: Article / Article
  • Cild: 38 Say: 3
  • Nəşr tarixi: 2025
  • Doi nömrəsi: 10.1016/j.tej.2025.107497
  • jurnalın adı: Electricity Journal
  • Jurnalın baxıldığı indekslər: Emerging Sources Citation Index (ESCI), Scopus, ABI/INFORM, Compendex, INSPEC, Public Affairs Index
  • Açar sözlər: business cycle, electricity mix, feed-in tariff, reduced-form model, renewable electricity, wind power
  • Açıq Arxiv Kolleksiyası: Məqalə
  • Adres: Bəli

Qısa məlumat

This study examines the relationship between feed-in tariffs and the share of renewable energy in the electricity mix of 36 OECD member states, quantifying its strength using a range of panel data estimation techniques. The results reveal a statistically significant positive long-term association between feed-in tariffs for wind energy and the share of renewables in the electricity mix, contrasted by a negative association in the short term. Specifically, a one-cent increase in FiTs is associated with a 0.43–0.79 % rise in the share of renewables in the long term perspective. Additionally, a 1 % increase in per capita income corresponds to a 0.07–0.14 % increase in the share of renewables in the energy mix. However, in the short run, a one-cent increase in feed-in tariffs associates with a 0.23 % decrease in the share of renewables in the energy mix. Insights from seven expert interviews suggest that the counterintuitive short-term association is likely data-driven and may be explained by time lags required renewable electricity output to adjust to higher feed-in tariffs during expansion or boom phases of the business cycle.