Environ Resource Econ (2011) 49:351–366 DOI 10.1007/s10640-010-9436-8 A Quantile Approach to Identify Factors Promoting Renewable Energy in European Countries António C. Marques · José A. Fuinhas · José P. Manso Accepted: 11 November 2010 / Published online: 30 November 2010 © Springer Science+Business Media B.V. 2010 Abstract This paper analyses the impact of several factors on the use of renewable energy sources in a set of European Union countries, by applying a quantile regression approach. We find that different factors are effective for different levels of renewable energy commitment and the magnitudes of some effects evolve in accordance with the level of renewable energy sources used. Consequently, some policies that do not take into account the different stages could carry different effects. The results suggest that the lobbying effect of the established industries hampers the development of renewable sources, and that this effect is greater for lower initial level of renewable energy use. The results reveal that environmental concerns have not yet achieved enough pressure to stimulate major developments on renewables. We include two new drivers, geographic area and European Union Directive 2001/77/EC. That Directive was effective in signaling the commitment to renewables, namely for countries with lower renewables use. Keywords Renewable energy · Quantile regression · EU Directive 2001/77/EC · European countries JEL Classification N74 · Q42 · Q58 Research supported by: NECE, I&D unity funded by the FCT - Portuguese Foundation for the Development of Science and Technology, Ministry of Science, Technology and Higher Education. A. C. Marques (B ) · J. A. Fuinhas · J. P. Manso NECE, Management and Economics Department, University of Beira Interior, Estrada do Sineiro, 6200-209 Covilhã, Portugal e-mail: amarques@ubi.pt J. A. Fuinhas e-mail: fuinhas@ubi.pt J. P. Manso e-mail: pmanso@ubi.pt 123