A Greener World - Assessing the Development of Renewable Energy Around the Globe

A Greener World

Assessing the Development of Renewable Energy around the Globe

Mario Fogliati, Peng Li

3/8/2011

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Table of Contents

Executive Summary 3

Objective and Background 4

Data description and sources: 5

Predictors 5

Response 10

Methods of Analysis 13

Findings 16

Appendix 18

Executive Summary

Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are naturally replenished. This report analyzes the effects of various factors on the development of renewable energy by regions worldwide. Factors such as crude oil prices, crude oil production, and carbon-dioxide emissions are analyzed for different regions around the world.

The analysis demonstrates that renewable energy production is affected by oil price, but at different significance levels in different regions.

With the models we developed, we are able to predict the future growth of renewable energy in different regions around the world.

Objective and Background

The world oil price has experienced a volatile increase over the past two decades. The negative impact of the energy price volatility on the economy has led countries and regions to actively seek alternative energy sources. As a result, renewable energy capacity has been increasing at an accelerating rate.

Our audience consists of the Board of Directors of a large energy multinational with consolidated experience in oil exploitation, refinery and wholesale and retail, interested in diversifying and investing in “innovative” and “renewable” sources of energy. We imagine that this company has required us to develop a simple model through which we can show how the major drivers of its previous production activity are going to affect the production of renewable energy in the future in different parts of the world. The objective of our audience is choosing the best area of the world where to invest in renewable energy on the basis...