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Modeling the effect of subsidized pricing policy on new product diffusion

Author

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  • Mesak, HI
  • Coleman, RW

Abstract

This paper is concerned mainly with highlighting the potential applications of photovoltaics (PV) together with its perceived advantages and disadvantages in comparison to alternative conventional sources of energy for different applications in an OPEC country. A diffusion model is developed, calibrated and used to forecast PV demand for the residential sector. The model is used to rationalize government subsidized pricing decisions over time to accelerate PV market penetration.

Suggested Citation

  • Mesak, HI & Coleman, RW, 1992. "Modeling the effect of subsidized pricing policy on new product diffusion," Omega, Elsevier, vol. 20(3), pages 303-312, May.
    • Handle: RePEc:eee:jomega:v:20:y:1992:i:3:p:303-312
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    Cited by:

    1. Karakaya, Emrah, 2014. "Finite Element Model of the Innovation Diffusion: An Application to Photovoltaic Systems," INDEK Working Paper Series 2014/6, Royal Institute of Technology, Department of Industrial Economics and Management.
    2. Karakaya, Emrah & Sriwannawit, Pranpreya, 2015. "Barriers to the adoption of photovoltaic systems: The state of the art," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 60-66.
    3. Karakaya, Emrah, 2016. "Finite Element Method for forecasting the diffusion of photovoltaic systems: Why and how?," Applied Energy, Elsevier, vol. 163(C), pages 464-475.

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