Multivariate Analysis of Solar City Economics

This chapter explores the possibility for cities to engage in network‐wide climate change strategies to attract capital market attention through capitalization of existing and currently unutilized rooftop real estate that is abundant in the urban environment. Termed “solar cities,” such strategies use city governance vehicles to catalyze public sector‐led, infrastructure‐scale design and investment of city‐wide photovoltaic (PV) technology deployment. The chapter introduces a multivariate analysis method for assessing solar city economics in the six cities: Amsterdam, London, Munich, New York City, Seoul, and Tokyo. The examination of solar city's practicality relies on three analytical tools: project finance analysis, regression analysis, and robustness tests. The chapter covers the project finance analysis of data to illustrate the relative impacts of market, finance, and policy portfolios in solar city economics. Using the regression analysis, the variables driving solar city viability are assessed.