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Empirical Analysis of Factors Influencing Price of Solar Modules

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  • Taghizadeh-Hesary, Farhad

    (Asian Development Bank Institute)

  • Yoshino, Naoyuki

    (Asian Development Bank Institute)

  • Inagaki, Yugo

    (Asian Development Bank Institute)

Abstract

The decline in solar module prices is one of the key drivers behind the growth of the solar energy market. Thus, the price reduction mechanism in solar modules has become an important topic as the role of solar electricity in the overall energy supply and the market value of solar modules grow globally. Many empirical analyses have been carried out to unveil the mechanism behind this price reduction. However, the research performed on the price reduction mechanism of solar modules over the years have focused purely on the technological aspect of the manufacturing. When analyzing price, the influence of economic factors such as interest rate and exchange rate must also be taken into consideration to achieve a precise analysis. We use an oligopolistic model and econometric method to determine the economic factors that have an influence on solar module prices.

Suggested Citation

  • Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki & Inagaki, Yugo, 2018. "Empirical Analysis of Factors Influencing Price of Solar Modules," ADBI Working Papers 836, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0836
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    8. Farhad Farhad Taghizadeh-Hesary, 2015. "Macroeconomic effects of oil price fluctuations on emerging and developed economies in a model incorporating monetary variables," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2015(2), pages 51-75.
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    10. Farhad Taghizadeh Hesary & Naoyuki Yoshino & Ghahraman Abdoli & Asadollah Farzinvash, 2013. "An Estimation of the Impact of Oil Shocks on Crude Oil Exporting Economies and Their Trade Partners," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 8(4), pages 571-591, December.
    11. Farhad Taghizadeh Hesary & Naoyuki Yoshino, 2014. "Monetary policies and oil price determination: an empirical analysis," OPEC Energy Review, Organization of the Petroleum Exporting Countries, vol. 38(1), pages 1-20, March.
    12. Naoyuki Yoshino & Farhad Taghizadeh-Hesary, 2014. "Monetary policy and oil price fluctuations following the subprime mortgage crisis," International Journal of Monetary Economics and Finance, Inderscience Enterprises Ltd, vol. 7(3), pages 157-174.
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    Cited by:

    1. Ehsan Rasoulinezhad & Farhad Taghizadeh-Hesary & Jinsok Sung & Nisit Panthamit, 2020. "Geopolitical Risk and Energy Transition in Russia: Evidence from ARDL Bounds Testing Method," Sustainability, MDPI, vol. 12(7), pages 1-17, March.
    2. Taghizadeh-Hesary, Farhad & Mortha, Aline & Farabi-Asl, Hadi & Sarker, Tapan & Chapman, Andrew & Shigetomi, Yosuke & Fraser, Timothy, 2020. "Role of energy finance in geothermal power development in Japan," International Review of Economics & Finance, Elsevier, vol. 70(C), pages 398-412.
    3. Isabella Tamine Parra Miranda & Juliana Moletta & Bruno Pedroso & Luiz Alberto Pilatti & Claudia Tania Picinin, 2021. "A Review on Green Technology Practices at BRICS Countries: Brazil, Russia, India, China, and South Africa," SAGE Open, , vol. 11(2), pages 21582440211, May.
    4. Hossain, Monzur & Yoshino, Naoyuki & Taghizadeh-Hesary, Farhad, 2021. "Default risks, moral hazard and market-based solution: Evidence from renewable energy market in Bangladesh," Economic Modelling, Elsevier, vol. 95(C), pages 489-499.
    5. Kostas Fragkiadakis & Panagiotis Fragkos & Leonidas Paroussos, 2020. "Low-Carbon R&D Can Boost EU Growth and Competitiveness," Energies, MDPI, vol. 13(19), pages 1-29, October.
    6. Taghizadeh-Hesary, Farhad & Rasoulinezhad, Ehsan & Yoshino, Naoyuki, 2019. "Energy and Food Security: Linkages through Price Volatility," Energy Policy, Elsevier, vol. 128(C), pages 796-806.
    7. Yoon‐Hee Ha & John Byrne & Hae‐Seok Lee & Ye‐Jin Lee & Dong‐Hwan Kim, 2020. "Assessing the impact of R&D policy on PV market development: The case of South Korea," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 9(2), March.
    8. 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.

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    More about this item

    Keywords

    solar modules; renewable energy; price reduction;
    All these keywords.

    JEL classification:

    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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