Impact of policy on solar PV supply for ASEAN and beyond

This paper assesses the role of renewable energy policy in solar photovoltaic energy supply. Cross-country findings are based on cross-sectional regressions and panel analysis including fixed effects and multiple approaches to give robust standard errors for within-group and cross-sectional dependence, showing that a composite renewable energy policy index has a significant influence at lags of up to six years on changes in solar energy supply per capita. There are also key results for more specific renewable energy policy types, with carbon pricing and such incentives as feed-in tariffs having the most robust impact on solar use. Association of Southeast Asian Nations (ASEAN) member states could benefit from further focus on renewable energy policies, given their relatively low solar photovoltaic supply per capita levels and renewable policy scores alike. The analysis suggests that expanded implementation of carbon pricing in ASEAN member states is an opportunity not to be missed.