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

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  • Taghizadeh-Hesary, Farhad
  • Yoshino, Naoyuki
  • Inagaki, Yugo
  • Morgan, Peter J.

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.

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  • Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki & Inagaki, Yugo & Morgan, Peter J., 2021. "Analyzing the factors influencing the demand and supply of solar modules in Japan – Does financing matter," International Review of Economics & Finance, Elsevier, vol. 74(C), pages 1-12.
    • Handle: RePEc:eee:reveco:v:74:y:2021:i:c:p:1-12
    DOI: 10.1016/j.iref.2021.01.012
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    2. Qadri, Hussain Mohi ud Din & Ali, Hassnian & Abideen, Zain ul & Jafar, Ahmad, 2024. "Mapping the Evolution of Green Finance Research and Development in Emerging Green Economies," Resources Policy, Elsevier, vol. 91(C).
    3. Gholipour, Hassan F. & Arjomandi, Amir & Yam, Sharon, 2022. "Green property finance and CO2 emissions in the building industry," Global Finance Journal, Elsevier, vol. 51(C).
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    7. Hasan, Mohammad Maruf & Du, Fang, 2023. "Nexus between green financial development, green technological innovation and environmental regulation in China," Renewable Energy, Elsevier, vol. 204(C), pages 218-228.
    8. Kong, Qunxi & Shen, Chenrong & Li, Rongrong & Wong, Zoey, 2021. "High-speed railway opening and urban green productivity in the post-COVID-19: Evidence from green finance," Global Finance Journal, Elsevier, vol. 49(C).
    9. Li, Weiqing & Chien, Fengsheng & Ngo, Quang-Thanh & Nguyen, Tien-Dung & Iqbal, Sajid & Bilal, Ahmad Raza, 2021. "Vertical financial disparity, energy prices and emission reduction: Empirical insights from Pakistan," MPRA Paper 109672, University Library of Munich, Germany.
    10. Lin, Boqiang & Li, Minyang, 2024. "Micro Mechanisms Driving China's Clean Energy Flourish: Business Expansion and Financing," International Review of Financial Analysis, Elsevier, vol. 92(C).

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    More about this item

    Keywords

    Solar module; Photovoltaics; Renewable energy; Green finance;
    All these keywords.

    JEL classification:

    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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