A New Renewable Energy Index

Abstract

Renewable power sources such as solar, wind, hydroelectric and geothermal are considered sustainable and environmentally sound alternatives to fossil fuels. There is a lack of a reliable multidimensional index to assess renewable energy adoption across the world. We aimed to develop a new index to assess the transition to renewable sources in different countries. Variables were reviewed for suitability for inclusion in the index. Three metrics were selected: renewable energy output, consumption of renewable energy, and electricity production from renewable sources. These were used to compile the Renewable Energy Index (REI). Analysis showed that REI ranged from zero to 69.5 (mean 23.1) across 142 countries. Nations such as Denmark, Norway and New Zealand were ranked high while oil-dependent countries had a lower index value. The REI is a novel measure of adoption of renewable energy sources in countries across the world. It has the potential to be used in economic analyses and planning for sustainable development. The Index may be useful in comparing countries and regions in order to encourage investment in renewable energy production.