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Survey of Photovoltaic Industry and Policy in Germany and China

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  • Thilo Grau
  • Molin Huo
  • Karsten Neuhoff

Abstract

As building-integrated photovoltaic (PV) solutions can meet around one-third of electricity demand in Germany and China, both countries are interested in exploring this potential. PV technologies have demonstrated significant price reductions, but large-scale global application of PV requires further technology improvements and cost reductions along the value chain. We analyze policies in Germany and China, including deployment support, investment support for manufacturing plants and R&D support measures, and we survey the industrial actors they can encourage to pursue innovation. While deployment support has been successful, investment support for manufacturing in these nations has not been sufficiently tied to innovation incentives, and R&D support has been comparatively weak. The paper concludes with a discussion of the opportunities for global policy coordination.

Suggested Citation

  • Thilo Grau & Molin Huo & Karsten Neuhoff, 2011. "Survey of Photovoltaic Industry and Policy in Germany and China," Discussion Papers of DIW Berlin 1132, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp1132
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    References listed on IDEAS

    as
    1. Nemet, Gregory F., 2006. "Beyond the learning curve: factors influencing cost reductions in photovoltaics," Energy Policy, Elsevier, vol. 34(17), pages 3218-3232, November.
    2. Bagnall, Darren M. & Boreland, Matt, 2008. "Photovoltaic technologies," Energy Policy, Elsevier, vol. 36(12), pages 4390-4396, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Photovoltaics; Technology Policy; Innovation; Investment Support;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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