Environmental, generation and policy determinants of feed-in tariff: A binary pooling and panel analysis

In this paper we analyze the key-factors behind the adoption of the Feed-in Tariff. We propose and test two regression models for binary data: a pooling specification and a panel one. We employ a comprehensive sample of 60 countries with distinct economic structures over the period 1980-2008. Economics, environmental and generation factors are used as regressors and results demonstrate that these factors are relevant for the policy decision to adopt the Feed-in Tariff. Furthermore, the panel specification appears a better specification, in a such heterogeneous context, than the classical pooled specification.