Regulatory mechanisms and institutionalisation of markets in the form of codes and standards (especially RPS) also attract institutional investors. According to our results this is the case for the aggregated sectors as well as in the wind sector, perhaps because the wind sector shows elements of a developed market based on mature technologies. The cost-effectiveness of this technology is proven, so it can compete with fossil fuel-based electricity generation in certain environments.
We also provide new insights in the discussion about RPS schemes. Looking at US states, Carley (2009) found a positive effect, whereas Delmas and Montes-Sancho (2011) did not find a significant positive contribution of RPS to RE investments. Thus, we confirm Carley (2009), Bird et al. (2005), and Menz & Vachon (2006) for a sample of countries beyond the USA. On the other hand, we contrast Delmas & Montes- Sancho (2011). Reliable support through codes and standards or obligation schemes supports investments into RE through institutional investors. These policy measures are mostly long term and not easily retractable, so it gives them certainty in their investment calculations.