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Generic technology R&D strategies in dual competing photovoltaic supply chains: A social welfare maximization perspective

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  • Chen, Zhisong
  • Sun, Ping

Abstract

In the context of global warming, photovoltaic (PV) industry is growing rapidly to advance carbon neutrality. A new generation PV technology based on perovskite solar cells has attracted high attention from the industry due to its advantage of low cost and high photoelectric conversion efficiency, and has gradually carried out relevant technology research and development (R&D), as well as small and medium-sized product trials. However, there are still some generic technical issues with perovskite solar cells, such as the stability of large area preparation, efficiency over large areas, and long service life under high efficiency. Collaborative R&D around generic technologies among module suppliers across PV supply chains will help create complementary synergies and accelerate breakthroughs in generic technologies. To explore R&D strategies and subsidy policies for the generic technology in competing PV supply chains, twelve game-theoretical decision models considering cooperative/non-cooperative R&D with/without government subsidy under four scenarios are developed, analyzed and compared respectively. The research results indicate that: (i) in all four scenarios, the adoption of a centralized operational strategy is more effective in terms of government subsidies and the operational performance of the PV supply chains than a hybrid or decentralized operational strategy. (ii) the government should adopt an appropriate subsidy intensity for the dual-competing PV supply chains and set a “threshold” subsidy policy. (iii) the positive externality of R&D effort has a positive spillover effect on profits, social welfare and other indicators. The positive externality of R&D effort for the generic technology can be better exploited by the two PV supply chains jointly deciding on the level of R&D expenditure and by the government providing financial subsidy support. This study is a pioneering study of dual competing PV supply chains in terms of cooperative R&D of generic technology, which is very limited in the PV supply chain management and subsidy policy research literature. The findings and some unnoticed issues in this paper provide a basis for future PV supply chain research.

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  • Chen, Zhisong & Sun, Ping, 2024. "Generic technology R&D strategies in dual competing photovoltaic supply chains: A social welfare maximization perspective," Applied Energy, Elsevier, vol. 353(PB).
    • Handle: RePEc:eee:appene:v:353:y:2024:i:pb:s0306261923014538
    DOI: 10.1016/j.apenergy.2023.122089
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