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The role of the complementary sector and its relationship with network formation and government policies in emerging sectors: The case of solar photovoltaics between 2001 and 2009

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  • Choi, Hyundo
  • Anadón, Laura Díaz

Abstract

Understanding the role of government policies in promoting the introduction of renewable technologies can help to catalyze the transition toward a more sustainable energy system. The literature on technological transitions using a multi-level perspective suggests that the co-evolution of the niche market (the new technology) and the complementary regime may have an important role to play in shaping this transition. This paper provides a quantitative analysis of the interactions between different types of solar photovoltaic (PV) networks at the niche level, the complementary semiconductor sector at the complementary regime level, and the solar PV policies in 14 different countries. Using three equations for solar PV knowledge generation, manufacturing, and deployment, we investigate linkages between feed-in-tariff (FiT) and renewable portfolio standard (RPS) policies, network development, and the existence of a complementary sector. The empirical findings show that the complementary sector is an important determinant in solar PV deployment and manufacturing and network effects are dependent on the strength of the complementary sector in solar PV deployment and manufacturing. Feed-in-tariff and renewable portfolio standards are associated with solar PV diffusion and not with manufacturing. Finally, domestic government policies promoting renewable energy markets, which often lead to domestic electricity rate increases, have contributed to increased manufacturing capabilities internationally, including also in countries without a strong complementary sector, such as China, through the channel of manufacturing collaborations from countries with a strong complementary sector.

Suggested Citation

  • Choi, Hyundo & Anadón, Laura Díaz, 2014. "The role of the complementary sector and its relationship with network formation and government policies in emerging sectors: The case of solar photovoltaics between 2001 and 2009," Technological Forecasting and Social Change, Elsevier, vol. 82(C), pages 80-94.
  • Handle: RePEc:eee:tefoso:v:82:y:2014:i:c:p:80-94
    DOI: 10.1016/j.techfore.2013.06.002
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    Cited by:

    1. Martin Kalthaus, 2017. "Identifying technological sub-trajectories in photovoltaic patents," Jena Economic Research Papers 2017-010, Friedrich-Schiller-University Jena.
    2. Gottschamer, L. & Zhang, Q., 2016. "Interactions of factors impacting implementation and sustainability of renewable energy sourced electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 164-174.
    3. Bruns, Stephan B. & Kalthaus, Martin, 2020. "Flexibility in the selection of patent counts: Implications for p-hacking and evidence-based policymaking," Research Policy, Elsevier, vol. 49(1).
    4. Gao, Xue & Rai, Varun, 2019. "Local demand-pull policy and energy innovation: Evidence from the solar photovoltaic market in China," Energy Policy, Elsevier, vol. 128(C), pages 364-376.
    5. Polzin, Friedemann & Egli, Florian & Steffen, Bjarne & Schmidt, Tobias S., 2019. "How do policies mobilize private finance for renewable energy?—A systematic review with an investor perspective," Applied Energy, Elsevier, vol. 236(C), pages 1249-1268.
    6. Binz, Christian & Diaz Anadon, Laura, 2016. "Transplanting clean-tech paths from elsewhere: The emergence of the Chinese solar PV industry," Papers in Innovation Studies 2016/29, Lund University, CIRCLE - Center for Innovation Research.
    7. Malhotra, Abhishek & Schmidt, Tobias S. & Huenteler, Joern, 2019. "The role of inter-sectoral learning in knowledge development and diffusion: Case studies on three clean energy technologies," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 464-487.
    8. Huenteler, Joern & Ossenbrink, Jan & Schmidt, Tobias S. & Hoffmann, Volker H., 2016. "How a product’s design hierarchy shapes the evolution of technological knowledge—Evidence from patent-citation networks in wind power," Research Policy, Elsevier, vol. 45(6), pages 1195-1217.
    9. Zolfagharian, Mohammadreza & Walrave, Bob & Raven, Rob & Romme, A. Georges L., 2019. "Studying transitions: Past, present, and future," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    10. Dong, Changgui & Sigrin, Benjamin & Brinkman, Gregory, 2017. "Forecasting residential solar photovoltaic deployment in California," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 251-265.
    11. 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.
    12. Coffman, Makena & Wee, Sherilyn & Bonham, Carl & Salim, Germaine, 2016. "A policy analysis of Hawaii's solar tax credit," Renewable Energy, Elsevier, vol. 85(C), pages 1036-1043.
    13. Doblinger, Claudia & Surana, Kavita & Anadon, Laura Diaz, 2019. "Governments as partners: The role of alliances in U.S. cleantech startup innovation," Research Policy, Elsevier, vol. 48(6), pages 1458-1475.

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