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Operating performance, industry agglomeration and its spatial characteristics of Chinese photovoltaic industry

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  • Zhang, Lingxian
  • Wang, Jieqiong
  • Wen, Haojie
  • Fu, Zetian
  • Li, Xinxing

Abstract

China is the world's largest energy consumer and is also leading in the solar photovoltaic industry. The solar energy industry, with advantageous clean and highly efficient production, is integral in maintaining the sustainable energy supply in an environmentally sensitive manner. Further development of the Chinese photovoltaic industry requires a status assessment for the current industrial setting. An analysis on the 58 Chinese photovoltaic listed enterprises is conducted in this study to analyze the operating performance, industry agglomeration and spatial characteristics of Chinese photovoltaic industry. Comprehensive analysis and evaluation of the enterprises’ operating performance are based on financial data by utilizing the Data Envelopment Analysis (DEA) method; Systematic analysis examines spatial characteristics through the application of the spatial autocorrelation analysis method. Results confirm the Chinese photovoltaic industry preliminarily appeared industry agglomeration with enterprises mainly distributed in east and north China, and gathered in developed coastal provinces. Superior performing photovoltaic enterprises are specifically located in north China. Most of the enterprises are in the up-stream or mid-stream of the photovoltaic industrial chain. Overall operating performance of the photovoltaic industry in China suffers from weak profits due to low technical efficiency. The key to improve the future development of these enterprises is the improvement of operating performance by strengthening technical efficiencies. Concurrently, governmental guidance should address profitable photovoltaic industry investments and improvement of production rates.

Suggested Citation

  • Zhang, Lingxian & Wang, Jieqiong & Wen, Haojie & Fu, Zetian & Li, Xinxing, 2016. "Operating performance, industry agglomeration and its spatial characteristics of Chinese photovoltaic industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 373-386.
    • Handle: RePEc:eee:rensus:v:65:y:2016:i:c:p:373-386
    DOI: 10.1016/j.rser.2016.07.010
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    2. Hao, Yu & Guo, Yunxia & Li, Suixin & Luo, Shiyue & Jiang, Xueting & Shen, Zhiyang & Wu, Haitao, 2022. "Towards achieving the sustainable development goal of industry: How does industrial agglomeration affect air pollution?," Innovation and Green Development, Elsevier, vol. 1(1).
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    4. 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.
    5. Xiaodong Yuan & Weiling Song, 2022. "Evaluating technology innovation capabilities of companies based on entropy- TOPSIS: the case of solar cell companies," Information Technology and Management, Springer, vol. 23(2), pages 65-76, June.
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    7. Hongli Liu & Xiaoyu Yan & Jinhua Cheng & Jun Zhang & Yan Bu, 2021. "Driving Factors for the Spatiotemporal Heterogeneity in Technical Efficiency of China’s New Energy Industry," Energies, MDPI, vol. 14(14), pages 1-21, July.
    8. Yan, Chen & Ji, Yaxing & Chen, Rui, 2023. "Research on the mechanism of selective industrial policies on enterprises' innovation performance ——Evidence from China's photovoltaic industry," Renewable Energy, Elsevier, vol. 215(C).
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    10. Wang, Jianda & Guo, Dongsheng, 2023. "Siphon and radiation effects of ICT agglomeration on green total factor productivity: Evidence from a spatial Durbin model," Energy Economics, Elsevier, vol. 126(C).
    11. Liu, Jicheng & Lin, Xiangmin, 2019. "Empirical analysis and strategy suggestions on the value-added capacity of photovoltaic industry value chain in China," Energy, Elsevier, vol. 180(C), pages 356-366.
    12. Shuai, Jing & Cheng, Xin & Ding, Liping & Yang, Jun & Leng, Zhihui, 2019. "How should government and users share the investment costs and benefits of a solar PV power generation project in China?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 86-94.
    13. Yiping Liu & Jian Chen & Lingjun Wang, 2020. "Research on Self-Organizing Evolution Level of China’s Photovoltaic Industry Chain System," Sustainability, MDPI, vol. 12(5), pages 1-22, February.
    14. Zhou, Wei & Chen, Jin, 2021. "Is R&D helpful for China’s energy technology and engineering industry to respond to external uncertainties?," Energy, Elsevier, vol. 226(C).
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