Analyzing the factors influencing the demand and supply of solar modules in Japan – Does financing matter

Farhad Taghizadeh-Hesary (), Naoyuki Yoshino (), Yugo Inagaki and Peter Morgan

International Review of Economics & Finance, 2021, vol. 74, issue C, 1-12

Abstract: This paper analyzes the influence of certain factors on the demand and supply of solar modules by employing the fully modified ordinary least squares method using Japanese data. Our regression analysis shows that interest rates and money supply (M2) significantly impact the solar photovoltaic module supply, indicating that lower interest rates and more funding channels for the renewable energy sector will increase solar photovoltaic module production. Based on this finding, the paper concludes that, for Japan to increase its energy self-sufficiency rate, the Government of Japan should implement green financing policies, providing renewable energy business owners with a wider variety of funding channels with lower interest rates, and ultimately invigorating investments in solar photovoltaic installation.

Keywords: Solar module; Photovoltaics; Renewable energy; Green finance (search for similar items in EconPapers)
JEL-codes: O3 Q21 Q41 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:74:y:2021:i:c:p:1-12

DOI: 10.1016/j.iref.2021.01.012

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