1. Greenbacks and Green Technology
Natalie Brown
Kshithij Shrinath
Kenyon Smutherman

2. The Flag Game
$74000
$9300
552 kWh
259 kWh
$1400
2400 kWh

3. How does a country’s level of economic development affect its renewable energy production?

4. Hypotheses Linear Inverse U-shaped U-shaped
Developing countries produce more
U-shaped
Developing countries produce less

5. Background Information

6. Attractiveness of renewable energy
Low/middle-income - vulnerability to climate change
High-income - energy stability
Oil price increases and volatility
Supply-side factors

7. Problems with renewable energy
Benefits difficult to quantify
High fixed and initial capital costs
Urbanizing countries tend toward fossil fuels
Financing mechanisms unavailable in low-income and middle-income countries
High-income countries entrenched in fossil fuels
US $41 billion in subsidies to oil and gas

8. Data and Methodology

9. Variables From the World Development Indicators
Independent variable: log GDP per capita (PPP) in constant 2005 US$
Dependent variable: electricity produced from renewable sources (kWh) per capita (includes nuclear)
1990 to 2009
2519 observations from 131 countries

10. Descriptive Data

11. Regressions Simple regression Country and year fixed-effects
Geography – land area, forest area, agricultural land
Population – density, rural percentage
Trade – imports/exports
Political indicators - European Union, OECD, regime type

13. Note the coefficients

14. Conclusions from Data
Linear and U-shaped hypotheses significant at 1% level throughout all models
Linear more correct from descriptive data
U-shape only in underdeveloped category
Developed countries significantly outpace others
Developing similar level to underdeveloped

15. Relevant cases

16. The way forward Renewable energy is a normal good
Fairly intuitive
Underdeveloped and developing countries in trouble
33% of greenhouse gas usage, 75% of damage
Adaptation more practical than mitigation
Internalize the social costs of fossil fuels and social benefits of renewable energy
Correct the externality

17. We Are (Intercultural and Environmentally Conscious) Georgetown!
Thank you!
We Are (Intercultural and Environmentally Conscious) Georgetown!