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Price dynamics and market relations in solar photovoltaic silicon feedstock trades

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  • Yu, Yang
  • Li, Hong
  • Bao, Haibo

Abstract

The paper intends to provide empirical evidence on silicon feedstock price dynamics to assess the way that major photovoltaic countries—the United States of America, Germany, Japan and South Korea—are related in trade competition to China. This issue is explored by addressing the following questions: How have feedstock prices transmitted between geographically separate and contractually different markets? How have different country markets been positioned in feedstock trades by contract? What causes the failure of full price transmission or perfect market integration? Based on a careful examination of China's status in feedstock trades, the price series by country and by contract are measured with the series by country and trade pattern over a reasonable period from 2007 to 2010. The dynamic price relations are analyzed with causality, cointegration and equilibrium tests. The results exhibit dominant but differential market relations by contract. The speed and extent of price transmission are substantially higher in spot trades. The failure of perfect market equilibrium is due to the material heterogeneity and contract arrangements. These findings imply that sufficient attention should be paid to the way that different photovoltaic silicon feedstock countries have competed and the factors that work to explain price inefficiency, but not price manipulations.

Suggested Citation

  • Yu, Yang & Li, Hong & Bao, Haibo, 2016. "Price dynamics and market relations in solar photovoltaic silicon feedstock trades," Renewable Energy, Elsevier, vol. 86(C), pages 526-542.
    • Handle: RePEc:eee:renene:v:86:y:2016:i:c:p:526-542
    DOI: 10.1016/j.renene.2015.08.069
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    References listed on IDEAS

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    2. Shubbak, Mahmood H., 2019. "The technological system of production and innovation: The case of photovoltaic technology in China," Research Policy, Elsevier, vol. 48(4), pages 993-1015.
    3. Su, Xianfang & Zhao, Yachao, 2025. "Risk spillovers between Chinese new energy futures and carbon-intensive assets: Asymmetric effect, time–frequency dynamics, and portfolio strategies," The North American Journal of Economics and Finance, Elsevier, vol. 75(PA).
    4. John Byrne & Job Taminiau & Kyung Nam Kim & Joohee Lee & Jeongseok Seo, 2017. "Multivariate analysis of solar city economics: impact of energy prices, policy, finance, and cost on urban photovoltaic power plant implementation," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 6(4), July.
    5. Pengfei Wang & Nguepi Tsafack Elvis & Hua Cheng, 2024. "Structural Characteristics and Evolution of the Dual Network of Patent Technology Collaboration and Innovation in China–Japan–ROK," Sustainability, MDPI, vol. 16(17), pages 1-22, September.

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