Is Feed-in Tariff forever? An Empirical Analysis

The aim of this study was to analyze the key-factors behind the adoption of Feed-in Tariff and the functional relationship between Gross Domestic Product, Carbon Dioxide emissions and the Share of Renewable (non-hydroelectric) electricity generation. To address these issues a panel binary regression model has been estimated in a comprehensive sample of 60 countries with different economic structure over the period 1980-2008. We control for variables for socioeconomic, environmental and policy characteristics. Results showed that factors included in the model were relevant for the policy decision to adopt Feed-in Tariff and that they are linked with this by a nonlinear relationship. By the analysis of the results can be demonstrate that Feed-in Tariff is not forever. FiT, in fact, is an important policy to incentive the RES generation, but it reaches a turning point in which should be revise, or eliminate, from the promotion policies.