Going “green”: trade specialisation dynamics in the solar photovoltaic sector

• Published in: Energy policy 2011-11, Vol.39 (11), p.7275-7283
• Main Authors: Algieri, Bernardina, Aquino, Antonio, Succurro, Marianna
• Format: Article
• Language: English
• Subjects: Applied sciences; Business; business enterprises; Consumption; Cost; Dynamics; Economic data; Economic development; Economic dynamics; Employment; Employment opportunities; Energy; Energy consumption; Energy economics; Energy industry; Energy policy; Energy use; Environmental policy; Environmentalism; Exact sciences and technology; Export-import trade; Fuel; Fuels; Gases; General, economic and professional studies; greenhouse gases; heat; Industry; International competitiveness; International markets; International trade; Markets; Natural energy; Photovoltaic cells; Photovoltaic power generation; Renewable energy sources; Solar cells; solar collectors; Solar energy; Solar photovoltaic; Solar photovoltaic sector; Solar power; Studies; Subsidies; Sun; sustainable technology; Technology; trade; Trade flows; Trade specialisation; Trade theory; Value; world markets
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2011.08.049

The present study aims at providing a comprehensive analysis of trade flows and the domestic value creation of the major solar photovoltaic industry at the world level. Solar technologies convert light and heat from the sun into useful energy. The use of the sun's energy can not only reduce the consumption of conventional fuels, thus reducing the emission of detrimental greenhouse gases, but it can also enable a gain in enhanced fuel and energy security along with lessening costs. In addition, green technologies and industries can promote economic growth and international competitiveness, and can offer new business and employment opportunities. It becomes, therefore, extremely important to deeply explore the dynamics of the solar photovoltaic sector. Specifically, the present work analyses the main global trends of this sector and sketches the key players on the world market, including producers, installers, and top traders. Based on an analysis of trade flows at the 6-digit level, the international specialisation patterns are investigated, and the role of various market and trade drivers, including subsidies in the uptake of solar technologies, is identified and examined. ► Trade specialisation in solar photovoltaics is examined using an index analysis. ► Trade of the US, UK and Germany has an intra-industry nature. ► Trade of Italy, Greece and Japan is more inter-industry oriented. ► There is a long-run relationship between PV exports, foreign income and prices.