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Climate notes: Solar Power Boom with Side-Effects

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  • Johann Wackerbauer
  • Jana Lippelt

Abstract

The German solar power industry is in a phase of market shake-out. The boom in solar power is being accompanied by over-capacities on the part of solar cells and modules and falling prices. Despite generous subsidies, the German photovoltaic industry, described as the industry of the future, is suffering a demand-side crisis and subsidization of the photovoltaic branch in Germany has proved an industrial policy debacle. Indeed, while Asian producers are targeting bigger market shares, some formerly leading German solar companies are facing bankruptcy. This reveals the drawbacks of a climate change policy which, according to the burden-sharing principle, tries to channel demand towards certain green technologies, instead of internalizing the external costs of conventional energy provision using economic instruments based on the polluter-pays principle.

Suggested Citation

  • Johann Wackerbauer & Jana Lippelt, 2012. "Climate notes: Solar Power Boom with Side-Effects," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 65(03), pages 31-34, February.
    • Handle: RePEc:ces:ifosdt:v:65:y:2012:i:03:p:31-34
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    References listed on IDEAS

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    1. Manuel Frondel/ Nolan Ritter/ Christoph M. Schmidt, 2008. "Photovoltaik: Wo viel Licht ist, ist auch viel Schatten," List Forum Chapter, in: List Gesellschaft e.V. (ed.), List Forum Band 34, edition 1, volume 1, chapter 3, pages 28 - 44, List Gesellschaft e.V..
    2. repec:zbw:rwipos:018 is not listed on IDEAS
    3. Volker Ruhl & Johann Wackerbauer, 2008. "Structure and development potential of the photovoltaic industry in Germany," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 61(14), pages 14-28, July.
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    Cited by:

    1. Johann Wackerbauer & Jana Lippelt, 2012. "Climate notes: Wind Energy’s Decade-Long Boom," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 65(14), pages 50-52, July.
    2. Tilmann Rave & Ursula Triebswetter & Johann Wackerbauer, 2013. "Koordination von Innovations-, Energie- und Umweltpolitik," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61, October.

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