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Multilevel assessment of diversity, innovation and selection in the solar photovoltaic industry

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  • van den Heuvel, Stijn T.A.
  • van den Bergh, Jeroen C.J.M.

Abstract

We undertake an empirical study of the solar photovoltaic (PV) industry using evolutionary-economic concepts. Experts regard solar energy as a realistic option for sustainable energy provision in the long run. We identify the innovation and selection forces that drive the changes in the solar PV industry. In addition, a quantitative analysis using diversity indexes is performed at four levels of the solar PV industry: countries, technologies, applications and companies. Richness (number of alternatives) and evenness are calculated in order to describe and identify the changes that have occurred over time at each level. Most remarkable is that evenness has increased at the company level and decreased at the other three levels. We draw a number of policy conclusions.

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  • van den Heuvel, Stijn T.A. & van den Bergh, Jeroen C.J.M., 2009. "Multilevel assessment of diversity, innovation and selection in the solar photovoltaic industry," Structural Change and Economic Dynamics, Elsevier, vol. 20(1), pages 50-60, March.
    • Handle: RePEc:eee:streco:v:20:y:2009:i:1:p:50-60
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    2. John Foster & Liam Wagner & Phil Wild & Junhua Zhao & Lucas Skoofa & Craig Froome, 2011. "Market and Economic Modelling of the Intelligent Grid: End of Year Report 2009," Energy Economics and Management Group Working Papers 09, School of Economics, University of Queensland, Australia.
    3. Orsatti, Gianluca & Pezzoni, Michele & Quatraro, Francesco, 2017. "Where Do Green Technologies Come From? Inventor Teams’ Recombinant Capabilities and the Creation of New Knowledge," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201711, University of Turin.
    4. Zeppini, Paolo & van den Bergh, Jeroen C.J.M., 2013. "Optimal diversity in investments with recombinant innovation," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 141-156.
    5. Sam Aflaki & Syed Abul Basher & Andrea Masini, 2015. "Does Economic Growth Matter? Technology-Push, Demand-Pull and Endogenous Drivers of Innovation in the Renewable Energy Industry," Working Papers hal-02011423, HAL.
    6. Orsatti, Gianluca & Quatraro, Francesco & Pezzoni, Michele, 2020. "The antecedents of green technologies: The role of team-level recombinant capabilities," Research Policy, Elsevier, vol. 49(3).
    7. Hao Cai & Ling Liang & Jing Tang & Qianxian Wang & Lihong Wei & Jiaping Xie, 2019. "An Empirical Study on the Efficiency and Influencing Factors of the Photovoltaic Industry in China and an Analysis of Its Influencing Factors," Sustainability, MDPI, vol. 11(23), pages 1-22, November.
    8. Krysiak, Frank C., 2011. "Environmental regulation, technological diversity, and the dynamics of technological change," Journal of Economic Dynamics and Control, Elsevier, vol. 35(4), pages 528-544, April.
    9. Hoppmann, Joern & Peters, Michael & Schneider, Malte & Hoffmann, Volker H., 2013. "The two faces of market support—How deployment policies affect technological exploration and exploitation in the solar photovoltaic industry," Research Policy, Elsevier, vol. 42(4), pages 989-1003.
    10. Tim Nelson, 2017. "Redesigning a 20th century regulatory framework to deliver 21st century energy technology," Journal of Bioeconomics, Springer, vol. 19(1), pages 147-164, April.
    11. Ebadian, Mahmood & van Dyk, Susan & McMillan, James D. & Saddler, Jack, 2020. "Biofuels policies that have encouraged their production and use: An international perspective," Energy Policy, Elsevier, vol. 147(C).
    12. del Río, Pablo & Bleda, Mercedes, 2012. "Comparing the innovation effects of support schemes for renewable electricity technologies: A function of innovation approach," Energy Policy, Elsevier, vol. 50(C), pages 272-282.
    13. Phillips, Jason, 2013. "Determining the sustainability of large-scale photovoltaic solar power plants," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 435-444.
    14. Gazheli, Ardjan & van den Bergh, Jeroen, 2018. "Real options analysis of investment in solar vs. wind energy: Diversification strategies under uncertain prices and costs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2693-2704.
    15. Subtil Lacerda, Juliana & van den Bergh, Jeroen C.J.M., 2016. "Diversity in solar photovoltaic energy: Implications for innovation and policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 331-340.
    16. Kallis, Giorgos & Norgaard, Richard B., 2010. "Coevolutionary ecological economics," Ecological Economics, Elsevier, vol. 69(4), pages 690-699, February.
    17. Jeroen C.J.M. van den Bergh, 2011. "Environmental and Climate Innovation: Limitations, Prices and Policies," Papers on Economics and Evolution 2010-23, Philipps University Marburg, Department of Geography.

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