What drives wind and solar energy investment in India and China?
While China and India are responsible for the biggest growth in carbon emissions, China is now the largest global investor in renewable energy and India saw the highest growth rate in recent times between 2010 and 2011. This paper looks at what the primary drivers of investment in wind and solar energy in India and China are. It argues that while the primary driver of all investment is a perceived business opportunity, renewable energy investments differ in important ways. Most pertinently, unlike in many other sectors, business opportunities often arise because government provides financial incentives.