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Determinants of solar photovoltaic deployment in the electricity mix: Do oil prices really matter?

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  • Valérie Mignon

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Margaux Escoffier

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Anthony Paris
  • Emmanuel Hache

Abstract

This paper investigates the determinants of solar photovoltaic (PV) deployment in the electricity mix for a panelof OECD and BRICS countries from 1997 to 2016 by paying particular attention to the impact of oil market con-ditions. Relying on a nonlinear, regime-switching specification, we show that rising oil prices stimulate PV de-ployment only if their growth rate exceeds 6.7% per annum. Although wefind that various other determinantsmatter—with the influence of some of them depending on the situation on the oil market—public policies playa crucial role.
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  • Valérie Mignon & Margaux Escoffier & Anthony Paris & Emmanuel Hache, 2021. "Determinants of solar photovoltaic deployment in the electricity mix: Do oil prices really matter?," Post-Print hal-02995105, HAL.
    • Handle: RePEc:hal:journl:hal-02995105
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    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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