IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v18y2025i10p2558-d1656178.html
   My bibliography  Save this article

Is the Industrial Policy Suitable for the Industrial Chain? A Case Study from the Photovoltaic Industry in China—Evidence from Shenzhen

Author

Listed:
  • Yin Li

    (School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China)

  • Yazhi Song

    (Business School, Jiangsu Normal University, Xuzhou 221116, China)

  • Qi Qin

    (School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China)

Abstract

Shenzhen is a pilot pioneer in China. Developing the photovoltaic industry is an important area for Shenzhen to address climate change; thus, the Shenzhen’s government issued a series of support policies. However, does the released policy promote the development of the Shenzhen photovoltaic industry? Starting from the guiding mechanism of industrial policy on the development of the industrial chain, this paper discusses the compatibility between industrial policy and the development of the industrial chain. Through the analysis of Shenzhen photovoltaic industry data, it is found that the total factor productivity of the Shenzhen photovoltaic industry is twice that of the Yangtze River Delta and the Pearl River Delta, and the life cycle of the industrial chain is lower than the national average. However, the concentration of Shenzhen’s photovoltaic industry in 2021 was less than two-thirds of that in 2013, and it is still declining. At the same time, Shenzhen has obvious advantages in the photovoltaic industry market, but the compatibility of industrial policies is insufficient. Therefore, the overall policy suitability of Shenzhen’s photovoltaic industry is poor. The policy adjustment should be based on improving the concentration of the regional photovoltaic industry and realizing the leapfrog development of the industry by encouraging photovoltaic enterprises to extend to both ends of the industrial chain.

Suggested Citation

  • Yin Li & Yazhi Song & Qi Qin, 2025. "Is the Industrial Policy Suitable for the Industrial Chain? A Case Study from the Photovoltaic Industry in China—Evidence from Shenzhen," Energies, MDPI, vol. 18(10), pages 1-21, May.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:10:p:2558-:d:1656178
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/18/10/2558/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/18/10/2558/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. John Paul Helveston & Gang He & Michael R. Davidson, 2022. "Quantifying the cost savings of global solar photovoltaic supply chains," Nature, Nature, vol. 612(7938), pages 83-87, December.
    2. Milner, Chris & Reed, Geoff & Talerngsri, Pawin, 2006. "Vertical linkages and agglomeration effects in Japanese FDI in Thailand," Journal of the Japanese and International Economies, Elsevier, vol. 20(2), pages 193-208, June.
    3. Han, Aiping & Ge, Jianping & Lei, Yalin, 2016. "Vertical vs. horizontal integration: Game analysis for the rare earth industrial integration in China," Resources Policy, Elsevier, vol. 50(C), pages 149-159.
    4. Wang, Yafei & Bai, Ying & Quan, Tianshu & Ran, Rong & Hua, Lei, 2023. "Influence and effect of industrial agglomeration on urban green total factor productivity—On the regulatory role of innovation agglomeration and institutional distance," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1158-1173.
    5. Liu, Zheming & Zeng, Saixing & Jin, Zhizhou & Shi, Jonathan Jingsheng, 2022. "Transport infrastructure and industrial agglomeration: Evidence from manufacturing industries in China," Transport Policy, Elsevier, vol. 121(C), pages 100-112.
    6. Kailan Tian & Erik Dietzenbacher & Richard Jong‐A‐Pin, 2022. "Global value chain participation and its impact on industrial upgrading," The World Economy, Wiley Blackwell, vol. 45(5), pages 1362-1385, May.
    7. Yijing Wang & Rong Wang & Katsumasa Tanaka & Philippe Ciais & Josep Penuelas & Yves Balkanski & Jordi Sardans & Didier Hauglustaine & Wang Liu & Xiaofan Xing & Jiarong Li & Siqing Xu & Yuankang Xiong , 2023. "Accelerating the energy transition towards photovoltaic and wind in China," Nature, Nature, vol. 619(7971), pages 761-767, July.
    8. Bao, Xiaohua & Gao, Lei & Jin, Yu & Sun, Jin, 2023. "Industrial agglomeration and firm exports: Micro-evidence based on input-output linkages," Economic Modelling, Elsevier, vol. 119(C).
    9. Shen, Wei & He, Jijiang & Yao, Shangheng, 2021. "Green industrial policy in the post grid parity era: Governing integrated Solar+ projects in China," Energy Policy, Elsevier, vol. 150(C).
    10. Guo, Jingjing & Guo, Bin & Zhou, Jianghua & Wu, Xiaobo, 2020. "How does the ambidexterity of technological learning routine affect firm innovation performance within industrial clusters? The moderating effects of knowledge attributes," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    11. Amrit Pathak & Shawn Leu & Mari L. Robertson & Mahinda Siriwardana, 2025. "Technical efficiency, scale effect, and trade liberalization: evidence from the Nepalese manufacturing sector," Applied Economics, Taylor & Francis Journals, vol. 57(9), pages 934-950, February.
    12. Lin, Boqiang & Zhang, Aoxiang, 2024. "Impact of government subsidies on total factor productivity of energy storage enterprises under dual-carbon targets," Energy Policy, Elsevier, vol. 187(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yijing Wang & Rong Wang & Katsumasa Tanaka & Philippe Ciais & Josep Penuelas & Yves Balkanski & Jordi Sardans & Didier Hauglustaine & Junji Cao & Jianmin Chen & Lin Wang & Xu Tang & Renhe Zhang, 2025. "Global spatiotemporal optimization of photovoltaic and wind power to achieve the Paris Agreement targets," Nature Communications, Nature, vol. 16(1), pages 1-19, December.
    2. Wang, Xueyan & Meng, Weidong & Wang, Chunyang & Li, Yuyu & Huang, Bo, 2025. "The influence mechanisms of transport infrastructure on China’s domestic trade: Evidence from trade weight data," Transport Policy, Elsevier, vol. 164(C), pages 130-143.
    3. Wang, Jin & Zhao, Zhipeng & Zhou, Jinglin & Cheng, Chuntian & Su, Huaying, 2024. "Co-optimization for day-ahead scheduling and flexibility response mode of a hydro–wind–solar hybrid system considering forecast uncertainty of variable renewable energy," Energy, Elsevier, vol. 311(C).
    4. Pedro Gomes da Cruz Filho & Danielle Devequi Gomes Nunes & Hayna Malta Santos & Alex Álisson Bandeira Santos & Bruna Aparecida Souza Machado, 2023. "From Patents to Progress: Genetic Algorithms in Harmonic Distortion Monitoring Technology," Energies, MDPI, vol. 16(24), pages 1-21, December.
    5. Sebastian Krantz, 2025. "Patterns of global and regional integration in the East African Community," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 161(1), pages 151-230, February.
    6. Yihan Wang & Zongguo Wen & Mao Xu & Christian Doh Dinga, 2025. "Long-term transformation in China’s steel sector for carbon capture and storage technology deployment," Nature Communications, Nature, vol. 16(1), pages 1-13, December.
    7. Tao, Kejun & Zhao, Jinghao & Tao, Ye & Qi, Qingqing & Tian, Yajun, 2024. "Operational day-ahead photovoltaic power forecasting based on transformer variant," Applied Energy, Elsevier, vol. 373(C).
    8. Yang, Fei & Liu, Kang & Wu, Lei & Ren, Yi & Liang, Tian, 2025. "Urban geometry and energy efficiency: Evidence from 282 cities in China," Energy, Elsevier, vol. 319(C).
    9. Hayato Kato & Toshihiro Okubo, 2022. "The Resilience of FDI to Natural Disasters Through Industrial Linkages," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(1), pages 177-225, May.
    10. Raphael Chiappini & François Viaud, 2021. "Macroeconomic, institutional, and sectoral determinants of outward foreign direct investment: Evidence from Japan," Pacific Economic Review, Wiley Blackwell, vol. 26(3), pages 404-433, August.
    11. Zhang, Zhenhua & Li, Peixuan & Wang, Xinyi & Ran, Rong & Wu, Wenshuai, 2024. "New energy policy and new quality productive forces: A quasi-natural experiment based on demonstration cities," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1670-1688.
    12. Lv, Furong & Tang, Haiping, 2025. "Assessing the impact of climate change on the optimal solar–wind hybrid power generation potential in China: A focus on stability and complementarity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 212(C).
    13. Rendao Ye & Yue Qi & Wenyan Zhu, 2023. "Impact of Agricultural Industrial Agglomeration on Agricultural Environmental Efficiency in China: A Spatial Econometric Analysis," Sustainability, MDPI, vol. 15(14), pages 1-18, July.
    14. Yihan Wang & Chen Chen & Yuan Tao & Zongguo Wen, 2025. "Uneven renewable energy supply constrains the decarbonization effects of excessively deployed hydrogen-based DRI technology," Nature Communications, Nature, vol. 16(1), pages 1-14, December.
    15. Yao, En-jian & Zhang, Tian-yu & Wang, David Z.W. & Zhang, Jun-yi, 2024. "Dynamic planning and decarbonization pathways of the highway power supply network," Applied Energy, Elsevier, vol. 376(PB).
    16. He, Jingze & Wang, Feng, 2025. "Does urban agglomeration reduce carbon emissions in Chinese cities? New perspective on factor mobility," Energy Economics, Elsevier, vol. 143(C).
    17. Yifei Deng & Yijing Wang & Xiaofan Xing & Yuankang Xiong & Siqing Xu & Rong Wang, 2024. "Requirement on the Capacity of Energy Storage to Meet the 2 °C Goal," Sustainability, MDPI, vol. 16(9), pages 1-17, April.
    18. Huang, Xinyu & Liu, Zemin & Gao, Xinyu & Xie, Yuan & Gao, Jiayi & Yang, Xiaohu, 2025. "Application of actively enhanced solar phase change heat storage system in building heating: A numerical and statistical optimization study," Renewable Energy, Elsevier, vol. 241(C).
    19. Hayibo, Koami Soulemane & Pearce, Joshua M., 2023. "Vertical free-swinging photovoltaic racking energy modeling: A novel approach to agrivoltaics," Renewable Energy, Elsevier, vol. 218(C).
    20. Ma, Runzhuo & Bu, Siqi, 2025. "Evaluation and mitigation of carbon emissions in energy industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 212(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:18:y:2025:i:10:p:2558-:d:1656178. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.