FORESEEING THE ROLE OF RAW MATERIAL PRICES IN RENEWABLE ENERGY DIFFUSION

The foremost need for countries, especially Pakistan and other Asian countries is the hunt for renewable and alternative energy because many countries like Pakistan, face the scarcity of energy. Many approaches are seeking to demonstrate the diffusion of renewable energy technologies (RET). Learning and experience curves are the highest generally exercised instruments, followed by further economic, policy- and barrier-related analyses. The purpose of this study is to support research on the role of raw material prices, precisely oil price and gas price on Renewable energy diffusion. Panel regression with fixed effects model is applied on data of three Asian countries, namely Pakistan, India, and China for the period 1990 to 2012 gathered from World Bank and EIA (Energy Information Administration). The findings reveal that the model confirms an adequate fit and a very significant influence of oil prices on investments in renewable energy technology capacity whereas the insignificant influence of natural gas prices in a renewable energy technology capacity.