International community is focusing on problem of climate change and is trying to reduce greenhouse gas which is a major cause of global warming. Advanced countries thought that New & Renewable Energy is alternative of greenhouse gas reduction. Th...
International community is focusing on problem of climate change and is trying to reduce greenhouse gas which is a major cause of global warming. Advanced countries thought that New & Renewable Energy is alternative of greenhouse gas reduction. Therefore, Many countries throughout the world are promoting electricity generation by New & Renewable Energy. Korea is among those nations which are actively embarking on commercialization efforts, and the Korean government has set an goal to increase the proportion of New & Renewable Energy in its primary energy mix to 11 percent by 2030. As of 2012, Korea will implement RPS(Renewable Portfolio Standard) to achieve the goal.
A previous study has shown that the difference in growth of electricity generation by New & Renewable Energy across countries has resulted from differences in the selection of policy instruments. However, electricity generation by New & Renewable Energy is differ between countries which have used the same policy instruments. This fact shows that different factors affect electricity generation by New & Renewable Energy. Hence, this study examines factors which influence electricity generation by New & Renewable Energy and assess the effects of each. The ultimate purpose of this study is to offer policy recommendations that will help governments maximize electricity generation by New & Renewable Energy.
This study conducts empirical analysis using statistical data of 34 OECD countries. The results of multiple regression analysis show that Feed-In Tariff(FIT) and business freedom have significant associations with electricity generation by New & Renewable Energy. This finding is implied as follows for Korea. First the Korean government needs to suggest method for linkage between FIT and RPS appropriately. Second the Korean government should minimize regulation of business except quota in New & Renewable Energy sector.