Drivers for the Development of the Renewable Energy Industry

This study focuses on analyzing the factors influencing the development of the renewable energy sector, with an emphasis on the differences between developing and developed countries. The research examines economic, environmental, technological, and climatic aspects that either promote or hinder the development of renewable energy sources (RES). The main hypothesis of the study is the assumption that developing countries will, on average, lag behind in the adoption of RES due to high initial costs and limited government budgets. At the same time, a hot climate may facilitate the successful adoption of solar energy in these countries. Methodologically, the study is based on regression analysis of data for 2017-2019 for 177 countries. Key findings include a negative correlation between RES production and carbon emissions, as well as subsidies for fossil fuels. Contrary to the hypothesis, developing countries are not lagging behind in RES production and sometimes even surpass developed countries in this indicator. The growth rate of RES depends on the existing level of RES. The study highlights the importance of government policy in the development of RES and identifies the need for further research into the factors influencing this sector for more accurate prioritization and strategy formation. The results obtained can be useful for the academic community and policymakers interested in promoting green energy and sustainable development.