Geographical interdependence, international trade and economic dynamics: The Chinese and German solar energy industries

Abstract

European Urban and Regional StudiesOil price increases, European gas supply interruptions and the global climate impacts of greenhouse gas emissions are increasing the importance of renewable sources of energy. Photovoltaic (PV) technologies have emerged as a central plank in the establishment of a low-carbon energy system. There are, however, striking differences in the geographies of production and use of PV systems. Between 2000 and 2010Germany was the most important market, while China emerged as the most important manufacturer. Weidong LiuInstitute of Geographical Sciences and Natural Resources, Research Chinese Academy of Sciences (CAS), China Godfrey YeungNational University of Singapore, Singapore AbstractThe trajectories of the German and Chinese photovoltaic industries differ significantly yet are strongly interdependent. Germany has seen a rapid growth in market demand and a strong increase in production, especially in the less developed eastern half of the country. Chinese growth has been export driven. These contrasting trajectories reflect the roles of market creation, investment and credit and the drivers of innovation and competitiveness. Consequent differences in competiveness have generated major trade disputes.

The political economy of energy transitions in Mozambique and South Africa: The role of the Rising Powers

“…A focus on global production networks and value chains is also useful here in that it helps offset more macro-scale, geopolitical interpretations by taking an actor-centric approach to understanding the variegated, country and industry-specific 15 development implications of south-south trade flows (Horner 2015) particularly those around renewable energy (c.f. Dunford et al 2013;Curran 2015).…”

Can a Fast‐Expanding Market Sustain with Supply‐Side Government Aid? An Investigation into the Chinese Solar Photovoltaics Industry

“…In the initial investment stage before 2004, growth was slow as a result of limited domestic demand and a small world market. Chinese products were also of too low quality to compete in the markets effectively (Dunford, Liu, Liu, & Yeung, ). The Chinese government's intervention in the solar PV industry increased in 2004, when the German government began creating solar projects in Germany (Bloomberg, ).…”

“…Consider, for example, Suntech Power Holdings Co. Ltd., once China's largest PV manufacturer. Despite objections from most senior executive officers and major stockholders (due to their concerns about the uncertainty in PV markets and slim profit margins), the CEO of Suntech, Mr. Zengrong Shi, convinced the Wuxi City government and local state‐owned companies to invest in the firm, thus enabling Suntech to expand production capacity from a 20‐ to a 30‐megawatt peak (MWp) in 2003 (Dunford et al, ).…”

Fighting against climate change and for fair trade: finding the EU’s interest in the solar panels dispute with China

“…At that time, anti-subsidy cases were very rare and nobody had thought to contest the legality of these policies, even as the companies that benefited from them expanded globally. Grau et al (2011) and Dunford et al (2013) for instance demonstrated how German industrial policies, using public grants and preferential treatment, had supported the expansion of the pioneer German PV manufacturing in the 1990s and 2000s. Ironically, the beneficiaries included Solar AG, which later became Solarworld, the main plaintiff in the EU-China solar dispute.…”

“…They first emphasized the highly-fragmented nature of the PV production chain at the global level (Grau et al 2011;Gallagher and Zhang 2013). In this chain, moreover, they pointed out that while Chinese companies dominated the manufacturing segment, European, Japanese and American firms were still largely dominant in most other segments, including R&D and expensive manufacturing equipment (Dunford et al 2013;Gallagher and Zhang 2013). Unsurprisingly, then, equipment manufacturers in England lobbied their MEPs and the government to voice their concerns about the duties in Brussels (Watson 2012).…”