DBPapers
DOI: 10.5593/SGEM2014/B53/S21.059

THE IMPACT OF ECONOMIC FREEDOM ON RENEWABLE ENERGY INVESTMENTS’ EFFICIENCY

C. Marinescu, A. A. Fucec
Wednesday 1 October 2014 by Libadmin2014

References: 14th International Multidisciplinary Scientific GeoConference SGEM 2014, www.sgem.org, SGEM2014 Conference Proceedings, ISBN 978-619-7105-19-3 / ISSN 1314-2704, June 19-25, 2014, Book 5, Vol. 3, 447-454 pp

ABSTRACT
The aim of this study is to analyze the influence of economic freedom on efficiency of renewable energy investments, as well as on the investments inflows. Five European countries are subject to this analysis as they represent different levels of economic freedom. To address this issue, an econometric approach was chosen. Authors modeled two linear regression models, using panel data over the period 1995-2011. Thus the linkage between the economic efficiency of renewable energy investments and economic freedom is determined as well as the relationship between renewable energy investments and economic freedom. Our hypothesis is confirmed, so economic freedom positively influences renewable energy investments in countries like Germany and Greece. In the same time the amount of investments increases with the economic freedom increase. Our analysis also reveals strong relationships, either positive or negative, between economic freedom and the economic efficiency of investments in renewable nergy. So, economic freedom represents a positive determinant for the economic efficiency of investments in renewable energy for Switzerland, Romania and Ukraine. In the same time it does not support the efficiency factor in Germany and Greece for reasons which are to be discussed.

Keywords: economic development, economic freedom, Europe 2020, investments efficiency, renewable energy investments.