• green policy
• staggered difference-in-difference
• climate change

This thesis aims at tracking the evolution of determinants of green
investment over the period 1990-2019 in European countries. Green investment in question refers to installation of renewables power
plants. These policy schemes are classified in literature into two broad categories, market-oriented and non-market oriented devices. Starting from the beginning of the 21th century, many countries principally adopted market-based policy choices: in particular, feed-in tariffs (FITs). FITs are characterized by a price-driven scheme, applicable for a certain amount of time and granting a guaranteed purchasing price for electricity produced by renewable energy sourced plants. While existing literature suggests that in the first decade of 2000s FITs had a major positive impact in renewable plants installation, in more recent years countries preferred the adoption of non-market devices. The analysis wants to determine whether market-oriented policies have been effective and how green installations changed after the policy switch. In order to explain the pivoting towards non-markets based devices, this thesis presents an empirical analysis of a panel dataset reporting installed capacities in 36 World countries. The goal of my empirical investigation is to exploit the heterogeneity of time for policy adoption and fit a staggered difference-in-difference econometric model to compare the average treatment effect of FITs on country renewable power.