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Accelerating renewable energy electrification and rural economic development with an innovative business model: A case study in China

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  • Li, Changsheng
  • Shen, Bo

Abstract

The rural developing world faces a significant challenge in achieving the dual objectives of economic growth and decarbonization. An innovative business model tested in China that combines the use of solar photovoltaics (PVs) and agricultural greenhouses offers a solution to meeting this challenge and can have the potential for global deployment. However, the traditional PV-greenhouse business model is facing growing difficulties with shrinking revenues due to declining feed-in-tariffs. This study discusses a new business model concept based on a case in which a local Chinese PV company has transformed its business model from a crop production business to a service platform. The study concludes that business model innovation for expanding PV-greenhouse functions can help PV agricultural companies effectively adapt their businesses to policy changes and that new supporting policies are needed in promoting PV-greenhouse integration, adopting financial supporting measures, and facilitating grid integration of PV.

Suggested Citation

  • Li, Changsheng & Shen, Bo, 2019. "Accelerating renewable energy electrification and rural economic development with an innovative business model: A case study in China," Energy Policy, Elsevier, vol. 127(C), pages 280-286.
    • Handle: RePEc:eee:enepol:v:127:y:2019:i:c:p:280-286
    DOI: 10.1016/j.enpol.2018.12.009
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    4. Zheng, Jiajia & Wang, Xingwu, 2021. "Can mobile information communication technologies (ICTs) promote the development of renewables?-evidence from seven countries," Energy Policy, Elsevier, vol. 149(C).
    5. Qiang Wang & Thomas Dogot & Yueling Yang & Jian Jiao & Boyang Shi & Changbin Yin, 2020. "From “Coal to Gas” to “Coal to Biomass”: The Strategic Choice of Social Capital in China," Energies, MDPI, vol. 13(16), pages 1-22, August.
    6. Ebrahim Navid Sadjadi & Roemi Fernández, 2023. "Relational Marketing Promotes Sustainable Consumption Behavior in Renewable Energy Production," Sustainability, MDPI, vol. 15(7), pages 1-18, March.
    7. Liu, Zhengguang & Guo, Zhiling & Song, Chenchen & Du, Ying & Chen, Qi & Chen, Yuntian & Zhang, Haoran, 2023. "Business model comparison of slum-based PV to realize low-cost and flexible power generation in city-level," Applied Energy, Elsevier, vol. 344(C).
    8. Gang Kou & Serhat Yüksel & Hasan Dinçer & Mohammed A.Hefni, 2024. "Integrated approach for sustainable development and investment goals: analyzing environmental issues in European economies," Annals of Operations Research, Springer, vol. 342(1), pages 429-475, November.
    9. Diatlova Valentyna & Diatlova Yuliia & Petryk Iryna & Hutareva Yuliia & Zubro Tetyana & Tyshchenko Olena, 2021. "Innovative Development: Model and Evaluation Method in the Context of Integration Processes," Management Theory and Studies for Rural Business and Infrastructure Development, Sciendo, vol. 43(1), pages 161-171, March.
    10. Song, Chenchen & Guo, Zhiling & Liu, Zhengguang & Hongyun, Zhang & Liu, Ran & Zhang, Haoran, 2024. "Application of photovoltaics on different types of land in China: Opportunities, status and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 191(C).
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