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Constructing Markets for Solar Energy—A Review of Literature about Market Barriers and Government Responses

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  • Victoria Kihlström

    (School of Technology and Business Studies, Business Administration and Management, Dalarna University, 781 70 Borlänge, Sweden)

  • Jörgen Elbe

    (School of Technology and Business Studies, Business Administration and Management, Dalarna University, 781 70 Borlänge, Sweden)

Abstract

A global conversion of energy production and consumption into renewable alternatives is required if climate targets are to be met. Solar photovoltaic systems (PVs), which convert sunlight into electricity, are an energy source that is receiving increasing attention. However, PVs are not competitive on the energy market and have therefore been dependent on governmental support through market interventions since their introduction. The aim of this paper is to find out what overall conclusions may be drawn after 40 years of experience in trying to establish the PV technology on the market through market interventions. In order to answer that aim, a systematic literature review of peer-reviewed studies on PV technology and market interventions from 1979 to 2019 is presented. The review clearly indicates that market barriers and interventions show great similarities over time and the technology is still dependent on government interference. The need for interventions does not look to decrease in the near future. The review also shows that market constructions by governments are short term in character. A conclusion drawn is that governments may sustain market interventions until nondesirable sources of energy are phased out.

Suggested Citation

  • Victoria Kihlström & Jörgen Elbe, 2021. "Constructing Markets for Solar Energy—A Review of Literature about Market Barriers and Government Responses," Sustainability, MDPI, vol. 13(6), pages 1-20, March.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:6:p:3273-:d:517958
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