TY - JOUR
T1 - The Effect of GDP and Exchange Rate on Import of Photovoltaic Cells in Indonesia
AU - Sajida, Nasiha
AU - Ajija, Shochrul Rohmatul
AU - Haryadi, Fajar Nurrohman
AU - Hakam, Dzikri Firmansyah
N1 - Publisher Copyright:
© Author(s).
PY - 2023/12
Y1 - 2023/12
N2 - The use of renewable energy has increasingly become a great concern for many countries due to environmental issues. One of the widely used sources of renewable energy nowadays is solar energy. The conversion of solar energy into electrical occurs through three main types of technology, namely photovoltaic (PV), solar thermal, and concentrating solar power (CSP). PV is the fastest-growing and widely used technology. In Indonesia, the utilization of PV technology continues to rise especially in the use of rooftop PV. Indonesia currently imports PV components such as solar cells from abroad. Most of the PV cells are imported from high-income countries. This study analyzes the effect of differences in Gross Domestic Product (GDP) per capita between Indonesia and trading partner countries. It also analyzes the effect of the real exchange rate on imports of photovoltaic cells from 13 countries in 2004-2019. Meanwhile, analysis of the impulse response and panel variance decomposition obtained from the Panel Vector Error Correction Model (PVECM) was used to ascertain the import response to the independent shock variable. Therefore, it was concluded that the differences in GDP per capita of Indonesia together with trading partner countries significantly affect the importation of photovoltaic components in the long run. In contrast, Rupiah's real exchange rate against partner countries' currency has a significant effect on imports of photovoltaic cells in the short and long term.
AB - The use of renewable energy has increasingly become a great concern for many countries due to environmental issues. One of the widely used sources of renewable energy nowadays is solar energy. The conversion of solar energy into electrical occurs through three main types of technology, namely photovoltaic (PV), solar thermal, and concentrating solar power (CSP). PV is the fastest-growing and widely used technology. In Indonesia, the utilization of PV technology continues to rise especially in the use of rooftop PV. Indonesia currently imports PV components such as solar cells from abroad. Most of the PV cells are imported from high-income countries. This study analyzes the effect of differences in Gross Domestic Product (GDP) per capita between Indonesia and trading partner countries. It also analyzes the effect of the real exchange rate on imports of photovoltaic cells from 13 countries in 2004-2019. Meanwhile, analysis of the impulse response and panel variance decomposition obtained from the Panel Vector Error Correction Model (PVECM) was used to ascertain the import response to the independent shock variable. Therefore, it was concluded that the differences in GDP per capita of Indonesia together with trading partner countries significantly affect the importation of photovoltaic components in the long run. In contrast, Rupiah's real exchange rate against partner countries' currency has a significant effect on imports of photovoltaic cells in the short and long term.
KW - Impulse Response Function
KW - Panel Vector Error Correction Model
KW - Renewable Energy
KW - Solar Cells
KW - Variance Decomposition
UR - http://www.scopus.com/inward/record.url?scp=85178916738&partnerID=8YFLogxK
U2 - 10.22059/ier.2023.327948.1007232
DO - 10.22059/ier.2023.327948.1007232
M3 - Article
AN - SCOPUS:85178916738
SN - 1026-6542
VL - 27
SP - 1268
EP - 1284
JO - Iranian Economic Review
JF - Iranian Economic Review
IS - 4
ER -