Market dynamics, innovation, and transition in China's solar photovoltaic (PV) industry

A critical review

Hongyang Zou, Huibin Du, Jingzheng Ren, Benjamin K. Sovacool, Yongjie Zhang, Guozhu Mao

Publikation: Bidrag til tidsskriftReviewForskningpeer review

69 Downloads (Pure)

Resumé

China’s photovoltaic (PV) industry has undergone dramatic development in recent years and is now the global market leader in terms of newly added capacity. However, market diffusion and adoption in China is not ideal. This paper examines the blocking and inducement mechanisms of China’s PV industry development from the perspective of technological innovation. By incorporating a Technological Innovation System (TIS) approach, the analysis performed here complements the previous literature, which has not provided agrounded itself in a theoretical framework for associated analyses. In addition, to determine the current market dynamics, we closely examine the market concentration trends as well as the vertical and horizontal integration of upstream and downstream actors and calculate the market concentration of the upstream and downstream integration (74.8% and 36.3%). The results of applying the TIS framework reveal that poor connectivity in networks, unaligned competitive entities and a lack of market supervision obstruct the development of China’s PV industry. Therefore, we maintain that inducement mechanisms are required to instigate learning-by-doing capacities, which may help overcome blocking mechanisms and offset functional innovation deficiencies. In addition, policy implications are proposed for promoting the development of the PV industry in China.
OriginalsprogEngelsk
TidsskriftRenewable & Sustainable Energy Reviews
Vol/bind69
Sider (fra-til)197-206
ISSN1364-0321
DOI
StatusUdgivet - 2017

Fingeraftryk

Innovation
Industry

Citer dette

Zou, Hongyang ; Du, Huibin ; Ren, Jingzheng ; Sovacool, Benjamin K. ; Zhang, Yongjie ; Mao, Guozhu . / Market dynamics, innovation, and transition in China's solar photovoltaic (PV) industry : A critical review. I: Renewable & Sustainable Energy Reviews. 2017 ; Bind 69. s. 197-206.
@article{02a4f8a36f7e4ff3bc4cda3a627ce5c1,
title = "Market dynamics, innovation, and transition in China's solar photovoltaic (PV) industry: A critical review",
abstract = "China’s photovoltaic (PV) industry has undergone dramatic development in recent years and is now the global market leader in terms of newly added capacity. However, market diffusion and adoption in China is not ideal. This paper examines the blocking and inducement mechanisms of China’s PV industry development from the perspective of technological innovation. By incorporating a Technological Innovation System (TIS) approach, the analysis performed here complements the previous literature, which has not provided agrounded itself in a theoretical framework for associated analyses. In addition, to determine the current market dynamics, we closely examine the market concentration trends as well as the vertical and horizontal integration of upstream and downstream actors and calculate the market concentration of the upstream and downstream integration (74.8{\%} and 36.3{\%}). The results of applying the TIS framework reveal that poor connectivity in networks, unaligned competitive entities and a lack of market supervision obstruct the development of China’s PV industry. Therefore, we maintain that inducement mechanisms are required to instigate learning-by-doing capacities, which may help overcome blocking mechanisms and offset functional innovation deficiencies. In addition, policy implications are proposed for promoting the development of the PV industry in China.",
author = "Hongyang Zou and Huibin Du and Jingzheng Ren and Sovacool, {Benjamin K.} and Yongjie Zhang and Guozhu Mao",
year = "2017",
doi = "10.1016/j.rser.2016.11.053",
language = "English",
volume = "69",
pages = "197--206",
journal = "Renewable & Sustainable Energy Reviews",
issn = "1364-0321",
publisher = "Pergamon Press",

}

Market dynamics, innovation, and transition in China's solar photovoltaic (PV) industry : A critical review. / Zou, Hongyang ; Du, Huibin; Ren, Jingzheng; Sovacool, Benjamin K. ; Zhang, Yongjie ; Mao, Guozhu .

I: Renewable & Sustainable Energy Reviews, Bind 69, 2017, s. 197-206.

Publikation: Bidrag til tidsskriftReviewForskningpeer review

TY - JOUR

T1 - Market dynamics, innovation, and transition in China's solar photovoltaic (PV) industry

T2 - A critical review

AU - Zou, Hongyang

AU - Du, Huibin

AU - Ren, Jingzheng

AU - Sovacool, Benjamin K.

AU - Zhang, Yongjie

AU - Mao, Guozhu

PY - 2017

Y1 - 2017

N2 - China’s photovoltaic (PV) industry has undergone dramatic development in recent years and is now the global market leader in terms of newly added capacity. However, market diffusion and adoption in China is not ideal. This paper examines the blocking and inducement mechanisms of China’s PV industry development from the perspective of technological innovation. By incorporating a Technological Innovation System (TIS) approach, the analysis performed here complements the previous literature, which has not provided agrounded itself in a theoretical framework for associated analyses. In addition, to determine the current market dynamics, we closely examine the market concentration trends as well as the vertical and horizontal integration of upstream and downstream actors and calculate the market concentration of the upstream and downstream integration (74.8% and 36.3%). The results of applying the TIS framework reveal that poor connectivity in networks, unaligned competitive entities and a lack of market supervision obstruct the development of China’s PV industry. Therefore, we maintain that inducement mechanisms are required to instigate learning-by-doing capacities, which may help overcome blocking mechanisms and offset functional innovation deficiencies. In addition, policy implications are proposed for promoting the development of the PV industry in China.

AB - China’s photovoltaic (PV) industry has undergone dramatic development in recent years and is now the global market leader in terms of newly added capacity. However, market diffusion and adoption in China is not ideal. This paper examines the blocking and inducement mechanisms of China’s PV industry development from the perspective of technological innovation. By incorporating a Technological Innovation System (TIS) approach, the analysis performed here complements the previous literature, which has not provided agrounded itself in a theoretical framework for associated analyses. In addition, to determine the current market dynamics, we closely examine the market concentration trends as well as the vertical and horizontal integration of upstream and downstream actors and calculate the market concentration of the upstream and downstream integration (74.8% and 36.3%). The results of applying the TIS framework reveal that poor connectivity in networks, unaligned competitive entities and a lack of market supervision obstruct the development of China’s PV industry. Therefore, we maintain that inducement mechanisms are required to instigate learning-by-doing capacities, which may help overcome blocking mechanisms and offset functional innovation deficiencies. In addition, policy implications are proposed for promoting the development of the PV industry in China.

U2 - 10.1016/j.rser.2016.11.053

DO - 10.1016/j.rser.2016.11.053

M3 - Review

VL - 69

SP - 197

EP - 206

JO - Renewable & Sustainable Energy Reviews

JF - Renewable & Sustainable Energy Reviews

SN - 1364-0321

ER -