This dissertation is written as a part of the MSc in Energy Systems. This study investigates if the presence of corruption or poor institutions has any effect on promoting the renewable energy. Alternative models including corruption and institutional estimates among the main drivers promoting renewable energy are estimated. A set of eighty countries with yearly data from 2001 to 2011 is being used. Panel data methodology of Fixed Effects and Random Effects is being applied. With the estimation of different models that include the corruption and institutional estimates we demonstrate the main drivers of the renewable energy. The main drivers of renewables are estimated to be the share of the common energy resources and the GDP per capita. The CO2 emission per capita, the energy use per capita, the growth of GDP and the share of energy imports are not estimated as significant drivers for the renewables. Regarding the corruptions and the institutional estimates, only the Government effectiveness was proven to have a significant negative link with the share of renewables. The links between the CPI, the Control of Corruption and the Government Effectiveness are presented but they are not found significant.
