Renewable energy drivers in France: a spatial econometric perspective

Abstract

ABSTRACT This article presents an empirical investigation of factors influencing local renewable energy (RE) deployment. The existing literature has mainly focused on the global contribution of RE at the macro-country level. The particularity of this study resides in the extension of the analysis to the local level, and it was motivated by the fact that the targets for RE deployment are partly defined at the national level, but the establishment of the means of production and the organization is delegated to the local level. Using French data for 95 administrative divisions (départements), we estimate a spatial panel data econometric model by considering serial correlation in the remainder errors. The results reveal strong spatial spillovers and high time persistence, suggesting that the presence of proximity between French local governments conducts local RE policies. The RE deployment of a given department is thus affected by its neighbours. Some determinants of RE deployment are finally identified to help authorities to increase RE supply in the future. Income effect is significant and derived for solar energy and bioenergy and is supplemented by indebtedness that seems to be a favourable strategy to increase solar RE investments. Political ideology is likely to partly explain wind and bioenergy deployment. Finally, geographical factors remain important drivers: solar energy is more developed in southern regions while wind power is more deployed in the north. Based on these results, policy coordination between departments is required to maximize their natural potentialities and increase RE deployment in the future.