IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i24p10948-d1543289.html
   My bibliography  Save this article

Gone with the Wind? An Assessment of Germany’s Onshore Wind Industry Amid Rising Chinese Competition

Author

Listed:
  • Florentina Paraschiv

    (Department of Business & Economics, Zeppelin University, Am Seemooser Horn 20, 88045 Friedrichshafen, Germany
    These authors contributed equally to this work.)

  • Benedict Anderer

    (Centre of Sustainability, Hertie School, 10117 Berlin, Germany
    These authors contributed equally to this work.)

  • Rayan Ayari

    (Department of Business & Economics, Zeppelin University, Am Seemooser Horn 20, 88045 Friedrichshafen, Germany
    These authors contributed equally to this work.)

Abstract

This paper studies the relative competitiveness of Germany’s onshore wind industry compared to China’s and investigates whether an equally drastic value chain relocation, similar to Germany’s solar PV industry, is likely. Based on a comprehensive study of Germany’s domestic market, international competitiveness indicators like the world trade share (WTS), revealed comparative advantage (RCA), and relative export advantage (RXA), as well as an expert interview, we found that Germany’s industry has lost competitiveness in recent years, supply chain shifts to China are observable, and Chinese manufacturers are poised to enter the German market. However, the German onshore wind industry is still competitive, has a strong basis in its domestic market, and, with the right energy policy framework, it could brace the storm. The novelty of this study is threefold: it offers a comprehensive comparison of the German and Chinese wind industries, presents the first analysis of the 2017 EEG reform’s impact on Germany’s wind industry, and is the first study to trace the evolution of domestic and foreign market shares in Germany’s onshore wind market.

Suggested Citation

  • Florentina Paraschiv & Benedict Anderer & Rayan Ayari, 2024. "Gone with the Wind? An Assessment of Germany’s Onshore Wind Industry Amid Rising Chinese Competition," Sustainability, MDPI, vol. 16(24), pages 1-16, December.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:24:p:10948-:d:1543289
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/24/10948/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/24/10948/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Victor Chang & Yian Chen & Qianwen Ariel Xu & Patricia Baudier & Ben S.C. Liu, 2021. "The market challenge of wind turbine industry-renewable energy in PR China and Germany," Post-Print hal-04314456, HAL.
    2. Kuik, Onno & Branger, Frédéric & Quirion, Philippe, 2019. "Competitive advantage in the renewable energy industry: Evidence from a gravity model," Renewable Energy, Elsevier, vol. 131(C), pages 472-481.
    3. Ludwig, Thorsten & Timm, Stefan & Cordes, Stephan & Schwieger, Filiz, 2023. "Branchenanalyse Windindustrie: Perspektiven vor dem Hintergrund von Globalisierung, Energiewende und Digitalisierung," Working Paper Forschungsförderung 273, Hans-Böckler-Stiftung, Düsseldorf.
    4. Huenteler, Joern & Schmidt, Tobias S. & Ossenbrink, Jan & Hoffmann, Volker H., 2016. "Technology life-cycles in the energy sector — Technological characteristics and the role of deployment for innovation," Technological Forecasting and Social Change, Elsevier, vol. 104(C), pages 102-121.
    5. Wang, Yadong & Wang, Delu & Shi, Xunpeng, 2023. "Sustainable development pathways of China's wind power industry under uncertainties: Perspective from economic benefits and technical potential," Energy Policy, Elsevier, vol. 182(C).
    6. Pegels, Anna & Lütkenhorst, Wilfried, 2014. "Is Germany׳s energy transition a case of successful green industrial policy? Contrasting wind and solar PV," Energy Policy, Elsevier, vol. 74(C), pages 522-534.
    7. M. A. Hannan & Ali Q. Al-Shetwi & M. S. Mollik & Pin Jern Ker & M. Mannan & M. Mansor & Hussein M. K. Al-Masri & T. M. Indra Mahlia, 2023. "Wind Energy Conversions, Controls, and Applications: A Review for Sustainable Technologies and Directions," Sustainability, MDPI, vol. 15(5), pages 1-30, February.
    8. Nahm, Jonas, 2017. "Renewable futures and industrial legacies: Wind and solar sectors in China, Germany, and the United States†," Business and Politics, Cambridge University Press, vol. 19(1), pages 68-106, March.
    9. Grashof, Katherina & Berkhout, Volker & Cernusko, Robert & Pfennig, Maximilian, 2020. "Long on promises, short on delivery? Insights from the first two years of onshore wind auctions in Germany," Energy Policy, Elsevier, vol. 140(C).
    10. Mark Huberty & Georg Zachmann, 2011. "Green exports and the global product space- Prospects for EU industrial policy," Working Papers 556, Bruegel.
    11. Adriana Florescu & Sorin Barabas & Tiberiu Dobrescu, 2019. "Research on Increasing the Performance of Wind Power Plants for Sustainable Development," Sustainability, MDPI, vol. 11(5), pages 1-19, February.
    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. Diogo Ferraz & Fernanda P. S. Falguera & Enzo B. Mariano & Dominik Hartmann, 2021. "Linking Economic Complexity, Diversification, and Industrial Policy with Sustainable Development: A Structured Literature Review," Sustainability, MDPI, vol. 13(3), pages 1-29, January.
    2. Dehler-Holland, Joris & Schumacher, Kira & Fichtner, Wolf, 2021. "Topic Modeling Uncovers Shifts in Media Framing of the German Renewable Energy Act," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 2(1).
    3. Löhr, Meike & Mattes, Jannika, 2022. "Facing transition phase two: Analysing actor strategies in a stagnating acceleration phase," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    4. Rogge, Karoline S. & Schleich, Joachim, 2018. "Do policy mix characteristics matter for low-carbon innovation? A survey-based exploration of renewable power generation technologies in Germany," Research Policy, Elsevier, vol. 47(9), pages 1639-1654.
    5. Kuik, Onno & Branger, Frédéric & Quirion, Philippe, 2019. "Competitive advantage in the renewable energy industry: Evidence from a gravity model," Renewable Energy, Elsevier, vol. 131(C), pages 472-481.
    6. Andersson, Johnn & Hellsmark, Hans & Sandén, Björn A., 2018. "Shaping factors in the emergence of technological innovations: The case of tidal kite technology," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 191-208.
    7. Andersson, Johnn & Perez Vico, Eugenia & Hammar, Linus & Sandén, Björn A., 2017. "The critical role of informed political direction for advancing technology: The case of Swedish marine energy," Energy Policy, Elsevier, vol. 101(C), pages 52-64.
    8. Garsous, Grégoire & Worack, Stephan, 2022. "Technological expertise as a driver of environmental technology diffusion through trade: Evidence from the wind turbine manufacturing industry," Energy Policy, Elsevier, vol. 162(C).
    9. Mac Clay, Pablo & Börner, Jan & Sellare, Jorge, 2023. "Institutional and macroeconomic stability mediate the effect of auctions on renewable energy capacity," Energy Policy, Elsevier, vol. 180(C).
    10. William Hongsong Wang & Vicente Moreno-Casas & Jesús Huerta de Soto, 2021. "A Free-Market Environmentalist Transition toward Renewable Energy: The Cases of Germany, Denmark, and the United Kingdom," Energies, MDPI, vol. 14(15), pages 1-27, July.
    11. Enrico Bergamini & Georg Zachmann, 2020. "Exploring EU’s Regional Potential in Low-Carbon Technologies," Sustainability, MDPI, vol. 13(1), pages 1-28, December.
    12. Arkadiusz Adamczyk, 2020. "Sizing and Control Algorithms of a Hybrid Energy Storage System Based on Fuel Cells," Energies, MDPI, vol. 13(19), pages 1-15, October.
    13. Fleck, Ann-Katrin & Anatolitis, Vasilios, 2023. "Achieving the objectives of renewable energy policy – Insights from renewable energy auction design in Europe," Energy Policy, Elsevier, vol. 173(C).
    14. Leng, Zhihui & Shuai, Jing & Sun, Han & Shi, Zhiyao & Wang, Zihan, 2020. "Do China's wind energy products have potentials for trade with the “Belt and Road” countries? -- A gravity model approach," Energy Policy, Elsevier, vol. 137(C).
    15. Li, Aitong & Xu, Yuan & Shiroyama, Hideaki, 2019. "Solar lobby and energy transition in Japan," Energy Policy, Elsevier, vol. 134(C).
    16. Mealy, Penny & Teytelboym, Alexander, 2017. "Economic Complexity and the Green Economy," INET Oxford Working Papers 2018-03, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford, revised Feb 2019.
    17. Binz, Christian & Gosens, Jorrit & Hansen, Teis & Hansen, Ulrich Elmer, 2017. "Toward Technology-Sensitive Catching-Up Policies: Insights from Renewable Energy in China," World Development, Elsevier, vol. 96(C), pages 418-437.
    18. Melliger, Marc, 2023. "Quantifying technology skewness in European multi-technology auctions and the effect of design elements and other driving factors," Energy Policy, Elsevier, vol. 175(C).
    19. Busiswe Skosana & Mukwanga W. Siti & Nsilulu T. Mbungu & Sonu Kumar & Willy Mulumba, 2023. "An Evaluation of Potential Strategies in Renewable Energy Systems and Their Importance for South Africa—A Review," Energies, MDPI, vol. 16(22), pages 1-27, November.
    20. Neves, Sónia Almeida & Marques, António Cardoso & de Sá Lopes, Leonardo Batista, 2024. "Is environmental regulation keeping e-waste under control? Evidence from e-waste exports in the European Union," Ecological Economics, Elsevier, vol. 216(C).

    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:jsusta:v:16:y:2024:i:24:p:10948-:d:1543289. 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.