Financial system and Renewable Energy Development: Analysis Based on Different Types of Renewable Energy Situation

The renewable energy projects which can be used as an alternative to traditional energy industries can not only be able to bring enormous economic benefits to people, but also produce positive environmental effects. Although the RE projects have obvious advantages, but countries have many obstacles during the development of RE projects, especially the lack of financial support. Based on the panel data of top 55 global financial countries and regions, this paper has conducted the analysis to test the important influence from the financial intermediation sector to the development of the RE sector in these countries during 1980-2008, which has confirmed that there is positive correlation between the development level of financial intermediation and the total power output of the renewable energy projects in these countries, and this positive correlation in the power output of the hydropower project is more evident. (C) 2011 Published by Elsevier Ltd. Selection and peer-review under responsibility of RIUDS