Research on cost—benefit analysis of additionality of public R&D investment: Japan's photovoltaic power R&D projects

摘要

This research, taking Japan's photovoltaic power R&D projects as the subject of analysis, is designedto propose a cost–benefit analysis method in which additionality of public R&D investment is figuredout with an econometric approach. The method we applied consists of following steps. First, arelational equation between public/private R&D investment and the price of photovoltaic power systemwas obtained. Based on the equation, the price of a photovoltaic power system in the absence of publicR&D investment was estimated. Then, using a demand function, separately obtained, an additionalconsumer surplus induced by public R&D investment was calculated. Lastly, cost–benefit analysis wasmade on the public R&D investment amount and the additional consumer surplus. From our analysisresults, we concluded that public R&D investment was yielding massive economic benefits in the longrun.