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Comparing the Impact of Wind Power and Solar Power Investment on Industrial Development: Application of Dynamic Energy Industry-related Models

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  • Cheng-Yih Hong

    (Department of Finance, Faculty of Finance, Chaoyang University of Technology, Taiwan,)

  • Hsiu-Ching Chang

    (Department of Business Administration, Chaoyang University of Technology, Taiwan.)

Abstract

Taiwan s energy transformation to change the power structure is a new energy policy for economic development, industrial upgrading and environmental preservation. This study investigates the possibility of evaluating the economic spillover effects and CO2 emissions to evaluate new energy policy objectives by investing in solar and wind power generation systems. The research results show that the short-term solar investment in economic effects is superior to wind power generation, and the economic spillover increases the scale of CO2 emissions. The main reason is that the high ratio of equipment for wind power generation comes from imports and reduces the spillover effect. Observing the economic spillover effects of individual industries, solar investment has the largest increase in Sewage Treatment Sector and Resource Recovery sectors, while wind investment has the largest increase in Machineryrelated industries. The scale of CO2 emissions in individual industries, solar investment has increased the most emissions by Chemical sectors, and wind investment has increased by Service industries. However, from a long-term perspective, the industrial upgrading through economic restructuringand the low emission coefficient of wind power will greatly improve the economic spillover effect of wind investment and improve the environment.

Suggested Citation

  • Cheng-Yih Hong & Hsiu-Ching Chang, 2019. "Comparing the Impact of Wind Power and Solar Power Investment on Industrial Development: Application of Dynamic Energy Industry-related Models," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 38-44.
    • Handle: RePEc:eco:journ2:2019-06-5
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    Cited by:

    1. Farooq, Umar & Ahmed, Jaleel & Shahbaz, Muhammad, 2022. "How various energy sources affect industrial investment? Empirical evidence from Asian economies," Energy, Elsevier, vol. 248(C).

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    More about this item

    Keywords

    solar power; wind power; economic spillover effects; CO 2 emissions.;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

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