Understanding the Role of the Political Regime and Rentier Economy in the Transition to Renewable Energy

The goal of this thesis is to understand what is the effect of the political regime and rentier economy on transition to renewable energy. In order to trace the mentioned impact panel data for 167 countries for the period from 2000 to 2021 was analyzed with the applying of fixed effect model. The results of the analysis demonstrate that higher levels of government accountability negatively influence the amount of renewable energy which is generated within the state. This result might be related with the focusing of the authorities of these states on short-term political decisions due to their responsibility to the electorate. Also, it was revealed that the higher share of oil rent in a country's Gross Domestic Product, has a positive effect on transition to renewable energy. An observed effect can be considered in the framework of Rentier State theory, which emphasizes the ability of such states maintain political stability, positively impacting renewables, through obtaining oil rent.