Abstract
We provide a multilevel logit model based on panel data which allows a capturing of the determinants of investment in their capacity for generating renewable energy in farms. As a novelty, we focus on regional determinants in order to assess the role of the regional dimension in making decisions by farmers about whether or not to invest in renewable energy generation. The relevance of this territorial/regional dimension acquires even greater significance in countries with a high degree of administrative decentralization, as is the case in Spain; where energy legislation gives a central role to regional governments in aspects related to the promotion of renewable energy sources. Multilevel analysis allows us to evaluate together both dimensions: Individual and regional. The results highlight the importance of the R & D investment carried out in regions, as well as the fact that there is an environment that favors the diffusion of renewable energies into the territory. Other variables, such as the level of agricultural income or regional energy intensity, do not seem to have significant relevance in the light of these results.
Highlights
The XXI United Nations Conference on Climate Change (COP21) held in Paris in 2015 expressed the need to step up efforts to mitigate the effects of global warming, setting the goal of preventing the earth’s surface temperature from rising more than 1.5 degrees Celsius with respect to pre-industrial levels [1]
By 2050, the aim is to achieve a neutral economy in terms of greenhouse gas (GHG) emissions, which includes the complete decarbonization of the energy supply, and the creation of carbon sinks through the development of agriculture and more sustainable land use
There is some disparity in the renewable energy source under study, mainly distinguishing contributions that analyze bioenergy production, and those that analyze the incorporation of solar PV and/or wind energy infrastructures; some contributions have been published that analyze the incorporation of renewable energy production in general into farm activity
Summary
The XXI United Nations Conference on Climate Change (COP21) held in Paris in 2015 expressed the need to step up efforts to mitigate the effects of global warming, setting the goal of preventing the earth’s surface temperature from rising more than 1.5 degrees Celsius with respect to pre-industrial levels [1] Based on this specific objective, the various supranational states and entities have established their particular strategies to contribute to achieving this. By 2050, the aim is to achieve a neutral economy in terms of GHG emissions, which includes the complete decarbonization of the energy supply, and the creation of carbon sinks through the development of agriculture and more sustainable land use In this strategic framework, the Farm Sector plays an important role in several ways. Farms can contribute significantly to achieving energy objectives, both by improving energy efficiency in their activity, and by incorporating renewable energy generation into their operations
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