Drivers and Barriers for Renewable Energy Investments in Emerging Countries – the Case of Wind Energy in China, India and Brazil

Abstract

Developing and emerging countries are gaining importance on the renewable energy stage due to their growth prospects in several areas and a strong investment increase in the recent past. This paper is dedicated to investigating the drivers and barriers to investments in renewable energies in developing countries. It explores these by using a unique dataset of institutional investors comparing wind energy investments in India, China and Brazil (as representatives of the BRICS countries) by means of a case study. Factors affecting the investments of large institutional investors include the legal framework (including policies), the institutional environment (including infrastructure), overarching macro-economic stability (including currency risk) and growth potential.