2019-28 "Determinants of investments in solar photovoltaic: Do oil prices really matter?"
Margaux Escoffier, Emmanuel Hache, Valérie Mignon, Anthony Paris
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- 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.
- Q4; Q42; C23; C24
- Mot(s) clé(s)
- Solar photovoltaic; Renewables deployment; Oil prices; Panel smooth transition regression