That is, it is important to understand how different factors affect RE investment decisions not only policies, but also technology, economic factors, and knowledge of the RE operations. 2.3. Linking RE Investment and Policies The RE policy literature has rarely incorporated the investors' viewpoint. The policy literature has usually focused on the economics of energy technologies and market efficiency. The economic evaluation for investment choices does not entirely explain how investors arrange capital or how they choose the competing RE technologies. The literature suggests that RE investors use social and psychological perspectives in the analysis of investment choices (Masini and Menichetti, 2013). Furthermore, the installed RE capacity instead of RE investment has been used as a dependent variable to look at the effectiveness of RE policies. For example, a large number of country/state level case studies have been carried out across different geographies, RE policy instruments, and RE sources (Aguirre and Ibikunle, 2014; Breukers and Wolsink, 2007; Carley, 2009; Lipp, 2007; Song, 2011; Zhao et al., 2013). Much of this literature suggests that renewable policy instruments are effective drivers to invest RE sources. On the other hand, diversity in RE policy outcomes is strongly affected by variations in the level of risk those different policies involve for renewable investors (Wüstenhagen and Menichetti, 2012). RE policy instruments that effectively reduce the risk for investors are more likely to encourage investment in large-scale deployment of RE (Luthi and Wüstenhagen, 2011; Masini and Menichetti, 2012). The importance of policy instruments is significant for developing renewable sectors. For example, Miranda (2010) argues that RE policies are
That is, it is important to understand how different factors affect RE investment decisions not only policies, but also technology, economic factors, and knowledge of the RE operations. 2.3. Linking RE Investment and Policies The RE policy literature has rarely incorporated the investors' viewpoint. The policy literature has usually focused on the economics of energy technologies and market efficiency. The economic evaluation for investment choices does not entirely explain how investors arrange capital or how they choose the competing RE technologies. The literature suggests that RE investors use social and psychological perspectives in the analysis of investment choices (Masini and Menichetti, 2013). Furthermore, the installed RE capacity instead of RE investment has been used as a dependent variable to look at the effectiveness of RE policies. For example, a large number of country/state level case studies have been carried out across different geographies, RE policy instruments, and RE sources (Aguirre and Ibikunle, 2014; Breukers and Wolsink, 2007; Carley, 2009; Lipp, 2007; Song, 2011; Zhao et al., 2013). Much of this literature suggests that renewable policy instruments are effective drivers to invest RE sources. On the other hand, diversity in RE policy outcomes is strongly affected by variations in the level of risk those different policies involve for renewable investors (Wüstenhagen and Menichetti, 2012). RE policy instruments that effectively reduce the risk for investors are more likely to encourage investment in large-scale deployment of RE (Luthi and Wüstenhagen, 2011; Masini and Menichetti, 2012). The importance of policy instruments is significant for developing renewable sectors. For example, Miranda (2010) argues that RE policies are
Thesis_Final_%20Nurcan.docx