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An Empirical Exploration Of The Effects Of Natural Gas Prices On Solar Energy Growth, Jeffrey Walton

Economics Theses

This paper analyzes the relationship between natural gas prices and solar installation in the past ten years. The point is to explain how the fluctuations in natural gas prices have effected solar installation. Briefly, natural gas prices from three to five years ago have a positive coefficient on solar installation in the current period, meaning that as the natural gas price three to five years ago increases, solar installation today increases. In course of the analysis, we find that the Goldilocks theory holds true and a natural gas price range from $4 to $6 leads to the highest level of …