“Immediate Turbulence, Durable Tailwinds: Wind FiTs” condenses the results of a re-examination of the nexus between feed-in tariffs (FiTs) and the rollout of renewables across 36 OECD electricity systems, updating the research question with broader coverage, alternative identification strategies, and qualitative interviews. The study reveals a statistically significant positive long-term association between feed-in tariffs for wind energy and the share of renewables in the electricity mix, contrasted by a negative association in the short term. Insights from seven expert interviews suggest that the counterintuitive short-term association is likely data-driven and may be explained by time lags required renewable electricity output to adjust to higher feed-in tariffs during expansion or boom phases of the business cycle.  

While the policy implications within the OECD context may be limited due to the advanced stage of FiT implementation, the lessons drawn from this analysis can provide meaningful guidance for countries in the Majority World. These nations are only beginning to deploy such instruments, and they may benefit from understanding both the long- term effectiveness and the short-term challenges revealed through this study. By offering a bird’s-eye perspective grounded in robust empirical evidence, the study seeks to inform future energy transition strategies beyond the OECD, particularly in developing contexts where renewable energy policies are still in formation.

Sadik-Zada, E.R. Wind power subsidies: Fueling long-term renewable share but slowing short-term progress? An empirical study of OECD countries. The Electricity Journal, Volume 38, Issue 3, 2025, 107497. https://www.sciencedirect.com/science/article/pii/S1040619025000429