Epsilon Archive for Student Projects

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.