The influence of raw material prices on renewables diffusion

The influence of raw material prices on renewables diffusion Purpose – There are several approaches trying to explain the diffusion of renewable energy technologies (RET). The most commonly used instruments are learning and experience curves, followed by further economic, policy‐ and barrier‐related analyses. In order to gain a more comprehensive understanding, additional influence factors on RET diffusion have to be studied. This paper aims to contribute to research on RET diffusion by adding the raw material price perspective. Design/methodology/approach – The authors develop a regression model to test the influence of raw material prices on RET diffusion, using investments in RET capacities as indicators of diffusion, and crude oil and natural gas prices as well as public R&D subsidies as main independent variables. The model is then applied to emerging RET (wind and solar power) for electricity generation in 18 OECD‐countries. Findings – In the case of wind power, the model shows an adequate fit and a highly significant impact of oil as well as gas prices on investments in RET capacity. In the case of solar power, the impact of raw material prices proves to be highly significant as well, but the weak model fit demands further adjustments of the parameters. Originality/value – Theoretical implications include the expansion of existing RET diffusion models to a raw material price component. From a practical point of view, the authors provide a starting basis for the systematic integration of raw material price developments into companies' planning and forecasting processes. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png foresight Emerald Publishing

The influence of raw material prices on renewables diffusion

foresight, Volume 15 (6): 15 – Nov 8, 2013

Loading next page...
 
/lp/emerald-publishing/the-influence-of-raw-material-prices-on-renewables-diffusion-MF0E6fB0bA
Publisher
Emerald Publishing
Copyright
Copyright © 2013 Emerald Group Publishing Limited. All rights reserved.
ISSN
1463-6689
DOI
10.1108/FS-11-2012-0084
Publisher site
See Article on Publisher Site

Abstract

Purpose – There are several approaches trying to explain the diffusion of renewable energy technologies (RET). The most commonly used instruments are learning and experience curves, followed by further economic, policy‐ and barrier‐related analyses. In order to gain a more comprehensive understanding, additional influence factors on RET diffusion have to be studied. This paper aims to contribute to research on RET diffusion by adding the raw material price perspective. Design/methodology/approach – The authors develop a regression model to test the influence of raw material prices on RET diffusion, using investments in RET capacities as indicators of diffusion, and crude oil and natural gas prices as well as public R&D subsidies as main independent variables. The model is then applied to emerging RET (wind and solar power) for electricity generation in 18 OECD‐countries. Findings – In the case of wind power, the model shows an adequate fit and a highly significant impact of oil as well as gas prices on investments in RET capacity. In the case of solar power, the impact of raw material prices proves to be highly significant as well, but the weak model fit demands further adjustments of the parameters. Originality/value – Theoretical implications include the expansion of existing RET diffusion models to a raw material price component. From a practical point of view, the authors provide a starting basis for the systematic integration of raw material price developments into companies' planning and forecasting processes.

Journal

foresightEmerald Publishing

Published: Nov 8, 2013

Keywords: Innovation; Forecasting; Energy management

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off