CLEAN ECONOMY WORKING PAPER SERIES - HETEROGENEOUS INVESTORS, SCALE ECONOMIES AND THE

At the same time the proportional difference between the investment size of project developers, banks and institutional investors into onshore and PV falls in selected years at the end of the sample period. [...] In section 2 we review the financing of renewable energy supply; the role of commercialisation in innovation; and existing evidence on the impact of finance on commercialisation in the low-carbon sector. [...] The targets data includes the yearly entries per country that register the initial year the target was set in place, the year the target is to be achieved, whether the target is on the proportion of renewables on energy production or consumption, and the target proportion of renewables. [...] We use these to build a yearly gap-to-target variable that consists of the ratio of the difference between the current participation of renewables and the targeted share, and the difference between the target year and the observation year.6 Hence, the variable takes negative values when countries are below 6 Our target gap variable for country j in year t is defined as where sjt is the share of re. [...] Given that the average investment size in PV remained stable in the latter years of the sample, as shown by our random effect estimate in Figure 5, this implies that in the latter years of the dataset we can observe convergence between banks and project developers in average investment size into solar PV.