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China's Impact on the Global Wind Power Industry

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  • Lema, Rasmus
  • Berger, Axel
  • Schmitz, Hubert

Abstract

China’s economic rise has transformed the global economy in a number of manufacturing industries. This paper investigates whether China’s transformative influence extends to the new green economy. Drawing on the debate about how China is driving major economic changes in the world – the “Asian drivers” debate – it identifies five corridors of influence and investigates their relevance for the wind energy industries. Starting with the demand side, it suggests that the size and rapid growth of the Chinese market have a major influence on competitive parameters in the global wind power industry. While Western firms have found ways of participating in the growth of the Chinese market, the government’s procurement regimes benefit Chinese firms. The latter have invested heavily and learned fast, accumulating production capabilities that have led to changes in the global pecking order of lead firms. While the combined impact of Chinese market and production power is already visible, other influences are beginning to be felt – arising from China’s coordination, innovation and financing power.

Suggested Citation

  • Lema, Rasmus & Berger, Axel & Schmitz, Hubert, 2013. "China's Impact on the Global Wind Power Industry," MPRA Paper 49604, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:49604
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    Cited by:

    1. Urban, Frauke, 2018. "China's rise: Challenging the North-South technology transfer paradigm for climate change mitigation and low carbon energy," Energy Policy, Elsevier, vol. 113(C), pages 320-330.
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    3. Keun Lee & Calestous Juma & John Mathews, 2014. "Innovation Capabilities for Sustainable Development in Africa," WIDER Working Paper Series wp-2014-062, World Institute for Development Economic Research (UNU-WIDER).
    4. Sudeshna Ghosh Banerjee & Elisa Portale, 2014. "Tracking Access to Electricity," World Bank Publications - Reports 18413, The World Bank Group.
    5. Zhang, Shijie & Wei, Jing & Chen, Xi & Zhao, Yuhao, 2020. "China in global wind power development: Role, status and impact," Renewable and Sustainable Energy Reviews, Elsevier, vol. 127(C).
    6. Yu, Yang & Li, Hong & Che, Yuyuan & Zheng, Qiongjie, 2017. "The price evolution of wind turbines in China: A study based on the modified multi-factor learning curve," Renewable Energy, Elsevier, vol. 103(C), pages 522-536.
    7. Cai, Yanpeng & Applegate, Scott & Yue, Wencong & Cai, Jianying & Wang, Xuan & Liu, Gengyuan & Li, Chunhui, 2017. "A hybrid life cycle and multi-criteria decision analysis approach for identifying sustainable development strategies of Beijing's taxi fleet," Energy Policy, Elsevier, vol. 100(C), pages 314-325.
    8. Rasmus Lema & Björn Johnson & Allan Dahl Andersen & Bengt-Åke Lundvall & Ankur Chaudhary (ed.), 2014. "Low-Carbon Innovation and Development," Globelics Thematic Reviews, Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management, number low-carbon, September.
    9. Lee, Keun & Juma, Calestous & Mathews, John, 2014. "Innovation capabilities for sustainable development in Africa," WIDER Working Paper Series 062, World Institute for Development Economic Research (UNU-WIDER).
    10. Rasmus Lema & Ambuj Sagar & Yuan Zhou, 2016. "Convergence or divergence? Wind power innovation paths in Europe and Asia," Science and Public Policy, Oxford University Press, vol. 43(3), pages 400-413.
    11. 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.
    12. De Marchi, Valentina & Giuliani, Elisa & Rabellotti, Roberta, 2015. "Local innovation and global value chains in developing countries," MERIT Working Papers 2015-022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    13. Stine Jessen Haakonsson & Dmitrij Slepniov, 2018. "Technology Transmission Across National Innovation Systems: The Role of Danish Suppliers in Upgrading the Wind Energy Industry in China," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 462-480, July.
    14. Huang Xian Yu, 2017. "Capital Asset Pricing Model – investigation and Testing," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 7(6), pages 1-5.
    15. Valentin Grimoux, 2018. "China’s Energy Policy & Investments and their Impact on the Sub-Saharan African Region," Working Papers 2018.27, Fondazione Eni Enrico Mattei.
    16. Goldemberg, José & Mello, Francisco F.C. & Cerri, Carlos E.P. & Davies, Christian A. & Cerri, Carlos C., 2014. "Meeting the global demand for biofuels in 2021 through sustainable land use change policy," Energy Policy, Elsevier, vol. 69(C), pages 14-18.
    17. Keun Lee and John Mathews, 2013. "Science, technology and innovation for sustainable development," CDP Background Papers 016, United Nations, Department of Economics and Social Affairs.
    18. Never, Babette, 2013. "Toward the Green Economy: Assessing Countries' Green Power," GIGA Working Papers 226, GIGA German Institute of Global and Area Studies.
    19. Grande, Genice & Islas, Jorge & Rios, Mario, 2015. "Technical and economic analysis of Domestic High Consumption Tariff niche market for photovoltaic systems in the Mexican household sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 738-748.
    20. Grimoux, Valentin, 2018. "China’s Energy Policy & Investments and their Impact on the Sub-Saharan African Region," ESP: Energy Scenarios and Policy 276177, Fondazione Eni Enrico Mattei (FEEM).
    21. Albino, Vito & Ardito, Lorenzo & Dangelico, Rosa Maria & Messeni Petruzzelli, Antonio, 2014. "Understanding the development trends of low-carbon energy technologies: A patent analysis," Applied Energy, Elsevier, vol. 135(C), pages 836-854.
    22. Valentina De Marchi & Elisa Giuliani & Roberta Rabellotti, 2018. "Do Global Value Chains Offer Developing Countries Learning and Innovation Opportunities?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 389-407, July.
    23. Thomas Poulsen & Charlotte Bay Hasager, 2017. "The (R)evolution of China: Offshore Wind Diffusion," Energies, MDPI, vol. 10(12), pages 1-32, December.

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    More about this item

    Keywords

    China; wind energy; global value chain; economic power; Asian drivers; coordination power; innovation; finance;
    All these keywords.

    JEL classification:

    • F6 - International Economics - - Economic Impacts of Globalization
    • L0 - Industrial Organization - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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