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

Margaux Escoffier (1, 2) , Emmanuel Hache (1, 2, 3) , Valérie Mignon (2, 4) , Anthony Paris (2, 5)

1 IFPEN - IFP Energies nouvelles
2 EconomiX - EconomiX
3 IRIS - Institut de Relations Internationales et Stratégiques
4 CEPII - Centre d'Etudes Prospectives et d'Informations Internationales
5 LEO - Laboratoire d'Économie d'Orleans

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.

Mots clés: Solar photovoltaic; Renewables deployment; Oil prices; Panel smooth transition regression.

Domaines: Etudes de l'environnement; Economies et finances

Margaux Escoffier, Emmanuel Hache, Valérie Mignon, Anthony Paris. Determinants of solar photovoltaic deployment in the electricity mix : Do oil prices really matter?. Energy Economics, 2021, 97, pp.105024. ⟨10.1016/j.eneco.2020.105024⟩. ⟨hal-03339134⟩