Can the Renewable Energy Directive (2018/2001/EU) explain the rise of M&A transactions in the renewable energy sector in Western Europe? A comparison with the United States

This thesis aims to investigate whether the Renewable Energy Directive (2018/2001/EU) has increased the number of M&A transactions in the renewable energy sector in Western Europe, as suggested by the neoclassical explanation of merger waves. In addition, it also assesses the impact of this directive in the United States. The methodology used in this paper follows Luo and Nazarov’s (2019) study, which investigates whether the affordable care act can explain the wave of M&A in the U.S. health insurance industry. The empirical analysis is conducted using regression models that take into account the directive, while controlling for factors from the neoclassical and behavioral frameworks, which are the two main theories attempting to explain M&A waves. Regressions are run on two data sets, one with Western European bidders and one with U.S bidders, comprising 406 and 422 deals, respectively. The results show that the directive has increased the number of deals in Western Europe while it had a more limited impact in the United States.