urenewable energy technology, sustainability, financial instrument, fiscal instrument, effectiveness


The new EU target of achieving 80-95% emission reductions by 2050 calls for novel energy policy solutions. Previous research has failed to evaluate the influence of all relevant elements of energy policy on technology-specific sustainable renewable energy diffusion. This paper adds to existing research by studying the effectiveness of financial and fiscal instruments on diffusion, additionally controlling for potential political, economic, social, and environmental drivers. These drivers are analysed for 26 EU countries over the period 1990-2011. The main results show that feed-in tariffs, quotas, and tenders effectively promote wind technologies. Other explanatory variables have technology- and model-dependent impacts.