The purpose of this study is to analyze the business model, economic effect of Photovoltaic in rural area through input-output analysis and to derive policy implications. First, Photovoltaic business models can be classified into land rental model, fa...
The purpose of this study is to analyze the business model, economic effect of Photovoltaic in rural area through input-output analysis and to derive policy implications. First, Photovoltaic business models can be classified into land rental model, farmer participation model, leased farmer model, and resident profit sharing model. As a way to operate a business, it is possible to distribute dividends through a cooperative. Second, the production inducement effect was 15,228.2 billion KRW and the industrial sectors most affected by the supply of photovoltaic (PV) were wholesale, retail and product brokerage services, industrial gases, and other chemical products, as well as market research and management support services, real estate-related services, and central banks and depository institutions. Third, the amount of added-value induced was 4,459.7 billion KRW, and the share of the top 20 industrial sectors was analyzed to be 64.1%. The industries with the largest value-added inducement were wholesale, retail and commodity brokerage services, industrial gases, other chemical products, central banks and depository institutions, and real estate-related services. Fourth, the amount of import inducement was 1,621.6 billion KRW, and the share of the top 20 industries was 66.2%. By industry sector, crude oil, individual devices, basic inorganic chemicals, and natural gas were analyzed to be high. Fifth, in the agricultural production sector according to the supply of PV, rice, vegetables, fruits, pig farming, and cattle were found to have a large impact in terms of production and added-value inducement .
Based on the above analysis results, the following policy implications are suggested. First, it can be seen that the PV supply business has a significant ripple effect not only on the intermediate goods industry but also on the tertiary service industries such as consulting, real estate, and finance. Second, it can be seen that the supply of PV has a significant ripple effect on production and added value in the agricultural sector.