| dc.description.abstract | This thesis aims to develop understanding of the determinants of the energy
transition by employing panel data analysis of 37 OECD countries over
the time period 1990 to 2020. To control for unobserved heterogeneity, we
utilize a fixed effects model in analysis of this dataset. To provide a robust
analysis, we correct for identified violations of the OLS assumptions. Furthermore,
we provide a critical review of how a difference-in-differences study
design would be useful in our context, and how it would be infeasible with
our data given the underlying assumptions. We challenge the existing literature
by applying the renewable energy share of the total energy supply as our
dependent variable. Unlike in the existing literature, which tend to deploy renewable
consumption in isolation from the total energy mix, we do not find
a link between GDP per capita and the energy mix development. As a step
to achieve stationary variables, we perform growth transformation of all continuous,
non-dummy variables. We find the share of renewable energy to have
a significant and positive relationship to EU Emissions Trading System membership, Brent Crude oil price, population, and renewable energy per capita.
The EU Emissions Trading System sees the greatest magnitude in our model,
and aligns with presented theory about international climate agreements. The
Brent Crude oil price’s positive and significant relationship with the dependent
variable also suggest that the substitution theory holds true for the energy markets
in our sample. A negative and significant relationship is found between
the dependent variable and the total energy supply, as well as industrial activity
levels. No significance is found in the volatility of the Brent Crude oil
price. | en_US |
