Over the last decade, India has started to concentrate earnestly on renewable energy. The Indian government, as well as different state governments, are adopting policy instruments such as feed in tariff, captive consumption, renewable purchase obligation and generation based incentive etc. aimed at renewable energy development. This paper evaluates the effectiveness of state level incentives for the development of wind energy in India. Fixed effect panel data modelling technique of econometric analysis is used to analyse the data of 26 Indian states in 11 years. The results show that feed in tariff and captive consumption are the significant predictors of wind energy development. However, renewable purchase obligation does not affect wind energy significantly.
. [J]. Frontiers in Energy, 2015, 9(3): 247-258.
Deepak SANGROYA, Jogendra NAYAK. Effectiveness of state incentives for promoting wind energy: A panel data examination. Front. Energy, 2015, 9(3): 247-258.
5.18 (w/o AD) 4.90 (with AD)-for projects in Jaisalmer, Jodhpur and Barmer districts. 5.44 (w/o AD) 5.14 (AD)-for other districts
25
Allowed
Permitted
Sikkim
Yes
Not available
Not available
Not available
Not available
Tamil Nadu
Yes
3.51
20
Allowed
Permitted
Uttarakhand
Yes
Wind zone I – 5.15 (w/o AD), 4.75 (with AD)
25
Allowed
Permitted
Wind zone II – 4.35 (w/o AD), 4.00 (with AD)
Wind zone III – 3.65 (w/o AD), 3.35 (with AD)
Wind zone IV – 3.20 (w/o AD), 2.90 (with AD)
Uttar Pradesh
Yes
Not available
Not available
Not available
Not available
West Bengal
Yes
5.70
10
Allowed
Permitted
Tab.3
Model 1
Model 2
Parameters
FIT/YFIT
0.435***
0.613***
CC/YCC
2.804***
0.098***
RPO/YRPO
−0.262
−0.231***
WRPO/YWRPO
0.427*
−0.362***
POTEN
0.230***
0.149***
POPU
0.040
0.151***
SGDP
0.297**
0.620***
Constant
1.679
1.832
State dummy variables
Yes
Yes
Time dummy variable
Yes
Yes
R2 (with state and time effects)
0.79
0.80
R2 (without state and time effects)
0.51
0.54
Number of observation
286
286
Specification tests
Hausman test
χ2 =274.16***
χ2 =139.71***
Wooldridge test
F (1, 24) = 28.81***
F (1, 24) = 17.03***
Modified Wald test
χ2 =57.19***
χ2 =95.68***
Frees’ test
1.732***
2.019***
Tab.4
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