• International Area Studies Review
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• v.21 no.1
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• pp.281-301
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• 2017

This article examines the way of the functionality of policy instruments for the development of renewable energy through the case of the wind power. The general barrier of the renewable energy development is considered to be the economic barrier. However the principal issue is the political barrier without the broad cooperation between the host government and the firm. Maintaining the long-term competitive advantage requires the shift of not only the strategy following the external circumstance but also the internal capacity development to utilize resources. Thus the comparative case study of Sri Lanka and Germany proposes the analysis of the supply-push and demand-pull policy with five patterns on the development of wind power in order to suggest how the functionality of policy instruments must be served to foster the wind power.