Probabilities to adopt Feed in Tariff by OPEC Countries using a panel probit model

In this paper we analyze the factors behind the adoption of feed-in-tariff and predict the probabilities that OPEC members adopt this policy incentive in the next years in order to promote the investments in renewable energy sources and reduce the environmental impact of the energy sector. We estimate a panel probit model to a set of 60 countries using annual data covering the period 1980–2008. We employ the binary time series of adoption of the feed-in-tariff as outcome variable and control for a set of economics, environmental and generation factors. Results demonstrate that all the factors are relevant to predict the probabilities and, furthermore, in most of the OPEC members the probabilities to adopt the feed-in-tariff are increasing over the time.