While the renewable energy sector, in general, is increasingly gaining ground with regard to energy mix, the electricity generation capacity from renewable energy sources varies from country to country. This study aims to examine the driving factors and the obstacles that explain the variation in the renewable energy generation capacities. A panel data analysis of the World’s leading economies (18 countries out of G-20 countries) from 2009 to 2013 assesses the association between installed renewable energy generation capacity and its drivers. The findings of this study suggest that financial investment from public and private sector is crucial to enhancing renewable energy generation capacity in leading economies. In addition to regulation and economic incentive policies, policies that ensure financial investment such as investment risk reduction measures can facilitate renewable energy capacity growth.
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