An increasing number of studies have been set to explore the drivers of renewable energy (RE). Interesting attempts have established that democracy plays a key role in the transition toward renewable energy. However, existing evidence suggests competing results. This chapter proposes to pay special attention to self-selection bias and endogeneity of renewable energy by employing several matching techniques to test whether the level of democracy (i.e., the treatment) has a significant impact on renewable energy consumption (i.e., the outcome) across a dataset of 86 developing countries over the period of 1996–2020. Specifically, these findings indicate that countries with higher levels of democracy tend to experience significantly higher levels of renewable energy consumption. This finding is highly relevant for policymakers concerned about the energy transition debate.
Part of the book: Democracy - Crises and Changes Across the Globe