IDEAS home Printed from https://ideas.repec.org/a/taf/apbizr/v21y2015i1p96-112.html
   My bibliography  Save this article

From mercantile strategy to domestic demand stimulation: changes in China's solar PV subsidies

Author

Listed:
  • Gang Chen

Abstract

Through scrutinizing China's industrial subsidies towards its solar photovoltaic (PV) sector from a theoretical perspective constructed by Michael Porter on the government's role in forging national comparative advantages, this study tries to capture recent dynamics in China's state capitalism, which has been evolving from a mercantile stage in which most subsidies were designed to influence factor conditions and supporting industries, to a new stage of domestic demand with more subsidies aimed at reshaping domestic demand conditions to absorb redundant manufacture capacity. China has emerged as the world's largest solar panel producer, but compared to its fast-expanding wind power market that has congenital advantages in attracting policy support, China's domestic solar PV market has been underdeveloped and failed to absorb a large part of its inflated production capacity. Empirical evidences have shown that in sync with the state's recent policy shift to domestic demand from export-orientated mercantile strategy, the government's role in supporting the solar PV industry has been transforming from subsidizing the production side to subsiding the demand side. As solar PV power generation is approaching the breaking point of grid parity with existing subsidies and feed-in tariffs, China could witness its PV installed capacity grow exponentially in the near future.

Suggested Citation

  • Gang Chen, 2015. "From mercantile strategy to domestic demand stimulation: changes in China's solar PV subsidies," Asia Pacific Business Review, Taylor & Francis Journals, vol. 21(1), pages 96-112, January.
    • Handle: RePEc:taf:apbizr:v:21:y:2015:i:1:p:96-112
    DOI: 10.1080/13602381.2014.939897
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13602381.2014.939897
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13602381.2014.939897?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. AfDB AfDB, . "Annual Report 2012," Annual Report, African Development Bank, number 461.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yunna Wu & Jianli Zhou & Yong Hu & Lingwenying Li & Xiaokun Sun, 2018. "A TODIM-Based Investment Decision Framework for Commercial Distributed PV Projects under the Energy Performance Contracting (EPC) Business Model: A Case in East-Central China," Energies, MDPI, vol. 11(5), pages 1-27, May.
    2. Wu, Xiuqin & Zhao, Jinsong & Zhang, Dayong & Lee, Wen-Chieh & Yu, Chin-Hsien, 2022. "Resource misallocation and the development of hydropower industry," Applied Energy, Elsevier, vol. 306(PA).
    3. Wang, Hongwei & Zheng, Shilin & Zhang, Yanhua & Zhang, Kai, 2016. "Analysis of the policy effects of downstream Feed-In Tariff on China’s solar photovoltaic industry," Energy Policy, Elsevier, vol. 95(C), pages 479-488.
    4. Corwin, Samuel & Johnson, Timothy L., 2019. "The role of local governments in the development of China's solar photovoltaic industry," Energy Policy, Elsevier, vol. 130(C), pages 283-293.
    5. Behuria, Pritish, 2020. "The politics of late late development in renewable energy sectors: Dependency and contradictory tensions in India’s National Solar Mission," World Development, Elsevier, vol. 126(C).
    6. Dong, Rentao & Xu, Jiuping & Lin, Bo, 2017. "ROI-based study on impact factors of distributed PV projects by LSSVM-PSO," Energy, Elsevier, vol. 124(C), pages 336-349.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Craig Garthwaite & Tal Gross & Matthew J. Notowidigdo, 2014. "Public Health Insurance, Labor Supply, and Employment Lock," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(2), pages 653-696.
    2. Tarek Roshdy Gebba & Mohamed Gamal Aboelmaged, 2016. "Corporate Governance of UAE Financial Institutions: A Comparative Study between Conventional and Islamic Banks," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 6(5), pages 1-7.
    3. Clarete, Ramon L. & Villamil, Isabela Rosario G., 2015. "Readiness of the Philippine Agriculture and Fisheries Sectors for the 2015 ASEAN Economic Community: A Rapid Appraisal," Research Paper Series DP 2015-43, Philippine Institute for Development Studies.
    4. Li, Xi & Yu, Biying, 2019. "Peaking CO2 emissions for China's urban passenger transport sector," Energy Policy, Elsevier, vol. 133(C).
    5. Alleyne, Dillon & Emanuel, Elizabeth & Phillips, Willard, 2013. "An assessment of fiscal and regulatory barriers to the deployment of energy efficiency and renewable energy technologies in Saint Lucia," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38502, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    6. Cristian Pana, 2013. "The National Central Bank’S Management Of Reserve Requirements," Working papers 16, Ecological University of Bucharest, Department of Economics.
    7. Junlakarn, Siripha & Kittner, Noah & Tongsopit, Sopitsuda & Saelim, Supawan, 2021. "A cross-country comparison of compensation mechanisms for distributed photovoltaics in the Philippines, Thailand, and Vietnam," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    8. McMahon, Rob, 2020. "Co-developing digital inclusion policy and programming with indigenous partners: Interventions from Canada," Internet Policy Review: Journal on Internet Regulation, Alexander von Humboldt Institute for Internet and Society (HIIG), Berlin, vol. 9(2), pages 1-26.
    9. John V. Duca, 2013. "Regionally, Housing Rebound Depends on Jobs, Local Supply Tightness," Annual Report, Federal Reserve Bank of Dallas.
    10. Divya Ravindranath, 2017. "Visa regulations and labour market restrictions: implications for Indian immigrant women in the United States," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 60(2), pages 217-232, June.
    11. LametK.Maika & Kevin Wachira, 2020. "Effects of organizational culture on strategy implementation in water boards in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(4), pages 15-28, July.
    12. Kanbayashi, Yoji., 2015. "The situation of non-regular public employees in Japan," ILO Working Papers 994861763402676, International Labour Organization.
    13. Jose Cuesta & Jon Jellema & Lucia Ferrone, 2021. "Fiscal Policy, Multidimensional Poverty, and Equity in Uganda: A Child-Lens Analysis," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(3), pages 427-458, June.
    14. Zhang, Zibin & Yang, Wenxin & Ye, Jianliang, 2021. "Why sulfur dioxide emissions decline significantly from coal-fired power plants in China? Evidence from the desulfurated electricity pricing premium program," Energy Policy, Elsevier, vol. 148(PB).
    15. Katherine O. Baer, 2013. "What International Experience Can Tell Us About the Potential Challenges of Administering a U.S. Vat," National Tax Journal, National Tax Association;National Tax Journal, vol. 66(2), pages 447-478, June.
    16. Wang, Can & Zheng, Xinzhu & Cai, Wenjia & Gao, Xue & Berrill, Peter, 2017. "Unexpected water impacts of energy-saving measures in the iron and steel sector: Tradeoffs or synergies?," Applied Energy, Elsevier, vol. 205(C), pages 1119-1127.
    17. Tyler Atkinson & David Luttrell & Harvey Rosenblum, 2013. "How bad was it? The costs and consequences of the 2007–09 financial crisis," Staff Papers, Federal Reserve Bank of Dallas, issue Jul.
    18. Christine Greenhalgh, 2013. "Science, Technology, Innovation and IP in India: New Directions and Prospects," Melbourne Institute Working Paper Series wp2013n37, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    19. Pieter Serneels & Stefan Dercon, 2021. "Aspirations, Poverty, and Education. Evidence from India," Journal of Development Studies, Taylor & Francis Journals, vol. 57(1), pages 163-183, January.
    20. Doan, Quang Hung & Vu, Hoang Nam & Dao, Ngoc Tien, 2013. "Sub-National Institutions and Firm Survival in Vietnam," MPRA Paper 63653, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apbizr:v:21:y:2015:i:1:p:96-112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/FAPB20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.