Key Drivers of PPPs in Electricity Generation in Developing Countries : Cross-Country Evidence of Switching between PPP Investment in Fossil Fuel and Renewable-Based Generation
This paper presents new global evidence on the key determinants of public-private partnership investment in electricity generated by fossil fuels and renewable energy based on a panel data analysis for 105 developing countries over a period of 16 y...
| Main Author: | |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2012
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2012/07/16462671/key-drivers-ppps-electricity-generation-developing-countries-cross-country-evidence-switching-between-ppp-investment-fossil-fuel-renewable-based-generation http://hdl.handle.net/10986/11938 |
| id |
okr-10986-11938 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ALTERNATIVE ENERGY ALTERNATIVE ENERGY DEVELOPMENT APPROACH BALANCE BARRELS PER DAY CARBON CARBON EMISSIONS CIVIL WAR CLEAN FUELS CLIMATE CHANGE COAL COAL INVESTMENT COMMODITY COMMODITY PRICES COMPETITION FOR ENERGY CONVENTIONAL ELECTRICITY CONVENTIONAL ELECTRICITY GENERATION COST OF ELECTRICITY CREDITWORTHINESS CRUDE OIL CRUDE OIL MARKET CRUDE OIL PRICE CRUDE OIL PRICES CRUDE OIL PRODUCTION CRUDE PRICES DEMAND GROWTH DEMOCRACY DEVELOPING COUNTRIES DIESEL DISTRIBUTION LOSSES DRILLING ELECTRICITY ELECTRICITY GENERATION ELECTRICITY SECTOR EMERGING ECONOMIES ENERGY DEMAND ENERGY EFFICIENCY ENERGY EFFICIENCY MEASURES ENERGY OUTLOOK ENERGY RESOURCES ENERGY SECURITY ENERGY SOURCE ENERGY SOURCES ENVIRONMENTAL FACTORS ENVIRONMENTAL SUSTAINABILITY ETHANOL FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL CRISES FIXED RATE FOSSIL FOSSIL FUEL FOSSIL FUEL PRICES FOSSIL FUEL USE FOSSIL FUELS FUEL OIL GAS PRICES GAS SUPPLY GLOBAL MARKET GLOBAL OUTPUT GOVERNANCE INDICATOR GOVERNANCE INDICATORS GOVERNMENT GUARANTEES GROWTH IN ENERGY DEMAND HEAT HYDROPOWER INCOME INTEREST RATES INTERNATIONAL ENERGY AGENCY INVESTMENT IN COAL KILOWATT-HOUR LIGHTING LNG LNG TERMINALS MARKET FAILURES NATURAL GAS NONRENEWABLE RESOURCES NUCLEAR ENERGY OIL OIL ACCOUNTS OIL CONSUMPTION OIL DEMAND OIL EXPORTS OIL PRICES OIL PRODUCERS OIL PRODUCTION OIL SHOCK OIL SHOCKS OIL SUPPLY OILS PEAK OIL PETROLEUM PETROLEUM EXPORTING COUNTRIES PETROLEUM PRODUCTION POLITICAL ECONOMY POLITICAL SYSTEM POWER POWER CRISIS POWER GENERATION POWER OUTAGES POWER PLANT POWER PLANTS POWER PRODUCERS POWER PURCHASE AGREEMENTS POWER SECTOR POWER SYSTEM PRICE ELASTICITY PRICE OF OIL PRIVATE INVESTMENT PRIVATE INVESTOR PRIVATE INVESTORS PRODUCTION CAPACITY PUBLIC FINANCES PUBLIC-PRIVATE PARTNERSHIP RAPID GROWTH RATE OF RETURN REGULATOR RENEWABLE ENERGY RENEWABLE ENERGY MARKET RENEWABLE SOURCES RENEWABLE SOURCES OF ENERGY SECURITY CONCERNS SOURCE OF ENERGY SPECULATIVE BUBBLE SUPPLY DISRUPTIONS SUPPLY SHOCK SUPPLY SHOCKS SUSTAINABLE ENERGY TECHNOLOGICAL CHANGE TOTAL ELECTRICITY GENERATION TRANSMISSION LINES WASTE WIND WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD ENERGY WORLD ENERGY OUTLOOK WORLD OIL |
| spellingShingle |
ALTERNATIVE ENERGY ALTERNATIVE ENERGY DEVELOPMENT APPROACH BALANCE BARRELS PER DAY CARBON CARBON EMISSIONS CIVIL WAR CLEAN FUELS CLIMATE CHANGE COAL COAL INVESTMENT COMMODITY COMMODITY PRICES COMPETITION FOR ENERGY CONVENTIONAL ELECTRICITY CONVENTIONAL ELECTRICITY GENERATION COST OF ELECTRICITY CREDITWORTHINESS CRUDE OIL CRUDE OIL MARKET CRUDE OIL PRICE CRUDE OIL PRICES CRUDE OIL PRODUCTION CRUDE PRICES DEMAND GROWTH DEMOCRACY DEVELOPING COUNTRIES DIESEL DISTRIBUTION LOSSES DRILLING ELECTRICITY ELECTRICITY GENERATION ELECTRICITY SECTOR EMERGING ECONOMIES ENERGY DEMAND ENERGY EFFICIENCY ENERGY EFFICIENCY MEASURES ENERGY OUTLOOK ENERGY RESOURCES ENERGY SECURITY ENERGY SOURCE ENERGY SOURCES ENVIRONMENTAL FACTORS ENVIRONMENTAL SUSTAINABILITY ETHANOL FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL CRISES FIXED RATE FOSSIL FOSSIL FUEL FOSSIL FUEL PRICES FOSSIL FUEL USE FOSSIL FUELS FUEL OIL GAS PRICES GAS SUPPLY GLOBAL MARKET GLOBAL OUTPUT GOVERNANCE INDICATOR GOVERNANCE INDICATORS GOVERNMENT GUARANTEES GROWTH IN ENERGY DEMAND HEAT HYDROPOWER INCOME INTEREST RATES INTERNATIONAL ENERGY AGENCY INVESTMENT IN COAL KILOWATT-HOUR LIGHTING LNG LNG TERMINALS MARKET FAILURES NATURAL GAS NONRENEWABLE RESOURCES NUCLEAR ENERGY OIL OIL ACCOUNTS OIL CONSUMPTION OIL DEMAND OIL EXPORTS OIL PRICES OIL PRODUCERS OIL PRODUCTION OIL SHOCK OIL SHOCKS OIL SUPPLY OILS PEAK OIL PETROLEUM PETROLEUM EXPORTING COUNTRIES PETROLEUM PRODUCTION POLITICAL ECONOMY POLITICAL SYSTEM POWER POWER CRISIS POWER GENERATION POWER OUTAGES POWER PLANT POWER PLANTS POWER PRODUCERS POWER PURCHASE AGREEMENTS POWER SECTOR POWER SYSTEM PRICE ELASTICITY PRICE OF OIL PRIVATE INVESTMENT PRIVATE INVESTOR PRIVATE INVESTORS PRODUCTION CAPACITY PUBLIC FINANCES PUBLIC-PRIVATE PARTNERSHIP RAPID GROWTH RATE OF RETURN REGULATOR RENEWABLE ENERGY RENEWABLE ENERGY MARKET RENEWABLE SOURCES RENEWABLE SOURCES OF ENERGY SECURITY CONCERNS SOURCE OF ENERGY SPECULATIVE BUBBLE SUPPLY DISRUPTIONS SUPPLY SHOCK SUPPLY SHOCKS SUSTAINABLE ENERGY TECHNOLOGICAL CHANGE TOTAL ELECTRICITY GENERATION TRANSMISSION LINES WASTE WIND WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD ENERGY WORLD ENERGY OUTLOOK WORLD OIL Vagliasindi, Maria Key Drivers of PPPs in Electricity Generation in Developing Countries : Cross-Country Evidence of Switching between PPP Investment in Fossil Fuel and Renewable-Based Generation |
| relation |
Policy Research Working Paper; No. 6118 |
| description |
This paper presents new global evidence
on the key determinants of public-private partnership
investment in electricity generated by fossil fuels and
renewable energy based on a panel data analysis for 105
developing countries over a period of 16 years from 1993 to
2008. It aims to identify the key factors affecting private
investors' decision to enter electricity generation,
through probit analysis, and the amount of investment sunk
in this market segment, based on Heckman's sample
selection analysis. The paper shows some evidence of
switching from investment in fossil fuels to investment in
hydro and renewables and within fossil fuels from oil to
natural gas. An interesting result of the econometric
analysis is that the likelihood of switching toward
renewable investment is driven by long-run environmental
factors, such as the increases in the price of oil and the
introduction of the Kyoto protocol. Another interesting
result is that sector governance support schemes, provided
by feed-in tariffs, affect only the entry in renewable based
electricity generation and have no impact in reducing the
amount of investment in fossil fuel based generation.
Economy-wide governance factors, including control for
corruption and degree of political competition, are factored
in by private investors only in the initial stage of the
game when the decision to enter into the generation market
is taken and not the amount of investment. This confirms
that the first generations of independent power producers
have been developed on the basis of long-term power purchase
agreements guaranteeing a fixed rate of return, through
take-or-pay clauses and/or government guarantees. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Vagliasindi, Maria |
| author_facet |
Vagliasindi, Maria |
| author_sort |
Vagliasindi, Maria |
| title |
Key Drivers of PPPs in Electricity Generation in Developing Countries : Cross-Country Evidence of Switching between PPP Investment in Fossil Fuel and Renewable-Based Generation |
| title_short |
Key Drivers of PPPs in Electricity Generation in Developing Countries : Cross-Country Evidence of Switching between PPP Investment in Fossil Fuel and Renewable-Based Generation |
| title_full |
Key Drivers of PPPs in Electricity Generation in Developing Countries : Cross-Country Evidence of Switching between PPP Investment in Fossil Fuel and Renewable-Based Generation |
| title_fullStr |
Key Drivers of PPPs in Electricity Generation in Developing Countries : Cross-Country Evidence of Switching between PPP Investment in Fossil Fuel and Renewable-Based Generation |
| title_full_unstemmed |
Key Drivers of PPPs in Electricity Generation in Developing Countries : Cross-Country Evidence of Switching between PPP Investment in Fossil Fuel and Renewable-Based Generation |
| title_sort |
key drivers of ppps in electricity generation in developing countries : cross-country evidence of switching between ppp investment in fossil fuel and renewable-based generation |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2012/07/16462671/key-drivers-ppps-electricity-generation-developing-countries-cross-country-evidence-switching-between-ppp-investment-fossil-fuel-renewable-based-generation http://hdl.handle.net/10986/11938 |
| _version_ |
1764418552180244480 |
| spelling |
okr-10986-119382021-04-23T14:02:58Z Key Drivers of PPPs in Electricity Generation in Developing Countries : Cross-Country Evidence of Switching between PPP Investment in Fossil Fuel and Renewable-Based Generation Vagliasindi, Maria ALTERNATIVE ENERGY ALTERNATIVE ENERGY DEVELOPMENT APPROACH BALANCE BARRELS PER DAY CARBON CARBON EMISSIONS CIVIL WAR CLEAN FUELS CLIMATE CHANGE COAL COAL INVESTMENT COMMODITY COMMODITY PRICES COMPETITION FOR ENERGY CONVENTIONAL ELECTRICITY CONVENTIONAL ELECTRICITY GENERATION COST OF ELECTRICITY CREDITWORTHINESS CRUDE OIL CRUDE OIL MARKET CRUDE OIL PRICE CRUDE OIL PRICES CRUDE OIL PRODUCTION CRUDE PRICES DEMAND GROWTH DEMOCRACY DEVELOPING COUNTRIES DIESEL DISTRIBUTION LOSSES DRILLING ELECTRICITY ELECTRICITY GENERATION ELECTRICITY SECTOR EMERGING ECONOMIES ENERGY DEMAND ENERGY EFFICIENCY ENERGY EFFICIENCY MEASURES ENERGY OUTLOOK ENERGY RESOURCES ENERGY SECURITY ENERGY SOURCE ENERGY SOURCES ENVIRONMENTAL FACTORS ENVIRONMENTAL SUSTAINABILITY ETHANOL FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL CRISES FIXED RATE FOSSIL FOSSIL FUEL FOSSIL FUEL PRICES FOSSIL FUEL USE FOSSIL FUELS FUEL OIL GAS PRICES GAS SUPPLY GLOBAL MARKET GLOBAL OUTPUT GOVERNANCE INDICATOR GOVERNANCE INDICATORS GOVERNMENT GUARANTEES GROWTH IN ENERGY DEMAND HEAT HYDROPOWER INCOME INTEREST RATES INTERNATIONAL ENERGY AGENCY INVESTMENT IN COAL KILOWATT-HOUR LIGHTING LNG LNG TERMINALS MARKET FAILURES NATURAL GAS NONRENEWABLE RESOURCES NUCLEAR ENERGY OIL OIL ACCOUNTS OIL CONSUMPTION OIL DEMAND OIL EXPORTS OIL PRICES OIL PRODUCERS OIL PRODUCTION OIL SHOCK OIL SHOCKS OIL SUPPLY OILS PEAK OIL PETROLEUM PETROLEUM EXPORTING COUNTRIES PETROLEUM PRODUCTION POLITICAL ECONOMY POLITICAL SYSTEM POWER POWER CRISIS POWER GENERATION POWER OUTAGES POWER PLANT POWER PLANTS POWER PRODUCERS POWER PURCHASE AGREEMENTS POWER SECTOR POWER SYSTEM PRICE ELASTICITY PRICE OF OIL PRIVATE INVESTMENT PRIVATE INVESTOR PRIVATE INVESTORS PRODUCTION CAPACITY PUBLIC FINANCES PUBLIC-PRIVATE PARTNERSHIP RAPID GROWTH RATE OF RETURN REGULATOR RENEWABLE ENERGY RENEWABLE ENERGY MARKET RENEWABLE SOURCES RENEWABLE SOURCES OF ENERGY SECURITY CONCERNS SOURCE OF ENERGY SPECULATIVE BUBBLE SUPPLY DISRUPTIONS SUPPLY SHOCK SUPPLY SHOCKS SUSTAINABLE ENERGY TECHNOLOGICAL CHANGE TOTAL ELECTRICITY GENERATION TRANSMISSION LINES WASTE WIND WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD ENERGY WORLD ENERGY OUTLOOK WORLD OIL This paper presents new global evidence on the key determinants of public-private partnership investment in electricity generated by fossil fuels and renewable energy based on a panel data analysis for 105 developing countries over a period of 16 years from 1993 to 2008. It aims to identify the key factors affecting private investors' decision to enter electricity generation, through probit analysis, and the amount of investment sunk in this market segment, based on Heckman's sample selection analysis. The paper shows some evidence of switching from investment in fossil fuels to investment in hydro and renewables and within fossil fuels from oil to natural gas. An interesting result of the econometric analysis is that the likelihood of switching toward renewable investment is driven by long-run environmental factors, such as the increases in the price of oil and the introduction of the Kyoto protocol. Another interesting result is that sector governance support schemes, provided by feed-in tariffs, affect only the entry in renewable based electricity generation and have no impact in reducing the amount of investment in fossil fuel based generation. Economy-wide governance factors, including control for corruption and degree of political competition, are factored in by private investors only in the initial stage of the game when the decision to enter into the generation market is taken and not the amount of investment. This confirms that the first generations of independent power producers have been developed on the basis of long-term power purchase agreements guaranteeing a fixed rate of return, through take-or-pay clauses and/or government guarantees. 2012-12-07T18:37:08Z 2012-12-07T18:37:08Z 2012-07 http://documents.worldbank.org/curated/en/2012/07/16462671/key-drivers-ppps-electricity-generation-developing-countries-cross-country-evidence-switching-between-ppp-investment-fossil-fuel-renewable-based-generation http://hdl.handle.net/10986/11938 English en_US Policy Research Working Paper; No. 6118 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |