Determinants of investments in solar photovoltaic: Do oil prices really matter?
Valérie Mignon (),
Emmanuel Hache () and
No 2019-28, EconomiX Working Papers from University of Paris Nanterre, EconomiX
This paper investigates the determinants of solar photovoltaic (PV) deployment in the electricity mix for a panel of OECD and BRICS countries from 1997 to 2016 by paying particular attention to the impact of oil market conditions. Relying on a nonlinear, regime-switching specification, we show that rising oil prices stimulate PV deployment only if their growth rate is important, above 6.7%. Although we find that various other determinants matter—with the influence of some of them depending on the situation on the oil market—public policies play a crucial role. In particular, our findings show that feed-in-tariffs should be encouraged to ensure a continuous fight against climate change, whatever the dynamics followed by oil prices.
Keywords: Solar photovoltaic; Renewables deployment; Oil prices; Panel smooth transition regression (search for similar items in EconPapers)
JEL-codes: Q4 Q42 C23 C24 (search for similar items in EconPapers)
Pages: 21 pages
New Economics Papers: this item is included in nep-ene, nep-ore and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:drm:wpaper:2019-28
Access Statistics for this paper
More papers in EconomiX Working Papers from University of Paris Nanterre, EconomiX Contact information at EDIRC.
Bibliographic data for series maintained by Valerie Mignon ().