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The Local Sources of Market Formation: Explaining Regional Growth Differentials in German Photovoltaic Markets

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  • Ulrich Dewald
  • Bernhard Truffer

Abstract

Sustainable transitions in the energy sector have gained only insufficient attention in economic geography so far. Conversely, transition scholars do not pay sufficient attention to the spatial dimension of these dynamics. This paper introduces a conceptual framework for analysing the spatial characteristics of market formation processes in emerging technological innovation systems, thus proposing a shared field of research for economic geographers and transition scholars. Drawing on a social constructivist analysis of market formation processes, we propose to differentiate “market formation” into three sub-processes for which we additionally specify spatial characteristics: (1) the formation of market segments, (2) market transactions and (3) end-user profiles. We apply this conceptual and explanatory framework to explain the uneven geography of photovoltaic market formation in Germany, the current world market leader in this field. By analysing the role of local solar initiatives in shaping and supporting local market formation processes, we are able to provide a more encompassing explanation of the German PV success story than alternative accounts that merely focus on strong incentive structures and favourable geophysical conditions.

Suggested Citation

  • Ulrich Dewald & Bernhard Truffer, 2011. "The Local Sources of Market Formation: Explaining Regional Growth Differentials in German Photovoltaic Markets," European Planning Studies, Taylor & Francis Journals, vol. 20(3), pages 397-420, March.
    • Handle: RePEc:taf:eurpls:v:20:y:2011:i:3:p:397-420
    DOI: 10.1080/09654313.2012.651803
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    Cited by:

    1. Binz, Christian & Truffer, Bernhard, 2017. "Global Innovation Systems—A conceptual framework for innovation dynamics in transnational contexts," Research Policy, Elsevier, vol. 46(7), pages 1284-1298.
    2. Hansen , Teis & Coenen , Lars, 2013. "The Geography of Sustainability Transitions: A Literature Review," Papers in Innovation Studies 2013/39, Lund University, CIRCLE - Centre for Innovation Research.
    3. Mattes, Jannika & Huber, Andreas & Koehrsen, Jens, 2015. "Energy transitions in small-scale regions – What we can learn from a regional innovation systems perspective," Energy Policy, Elsevier, vol. 78(C), pages 255-264.
    4. Wirth, Steffen, 2014. "Communities matter: Institutional preconditions for community renewable energy," Energy Policy, Elsevier, vol. 70(C), pages 236-246.
    5. Patrycjusz Zarębski & Dominik Katarzyński, 2023. "A Theoretical Framework for a Local Energy Innovation System Based on the Renewable Energy Case of Poland," Energies, MDPI, vol. 16(9), pages 1-24, April.
    6. Breul Moritz & Broekel Tom & Brachert Matthias, 2015. "Die Treiber der räumlichen Emergenz und Konzentration der Photovoltaik- Industrie in Deutschland," ZFW – Advances in Economic Geography, De Gruyter, vol. 59(3), pages 133-150, December.
    7. Dorel N Manitiu & Giulio Pedrini, 2015. "Smart and sustainable cities in the European Union. An ex ante assessment of environmental, social, and cultural domains," SEEDS Working Papers 1315, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jul 2015.
    8. Koen Frenken, 2016. "A Complexity-Theoretic Perspective on Innovation Policy," Papers in Evolutionary Economic Geography (PEEG) 1619, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2016.
    9. Lisa-Britt Fischer & Jens Newig, 2016. "Importance of Actors and Agency in Sustainability Transitions: A Systematic Exploration of the Literature," Sustainability, MDPI, vol. 8(5), pages 1-21, May.
    10. Dermont, Clau & Ingold, Karin & Kammermann, Lorenz & Stadelmann-Steffen, Isabelle, 2017. "Bringing the policy making perspective in: A political science approach to social acceptance," Energy Policy, Elsevier, vol. 108(C), pages 359-368.
    11. Coenen, Lars & Grillitsch, Markus & Hansen, Teis & Moodysson, Jerker, 2017. "An innovation system framework for system innovation policy: the case of Strategic Innovation Programs (SIPs) in Sweden," Papers in Innovation Studies 2017/8, Lund University, CIRCLE - Centre for Innovation Research.
    12. Coenen, Lars & Benneworth, Paul & Truffer, Bernhard, 2012. "Toward a spatial perspective on sustainability transitions," Research Policy, Elsevier, vol. 41(6), pages 968-979.
    13. Fuenfschilling, Lea & Truffer, Bernhard, 2016. "The interplay of institutions, actors and technologies in socio-technical systems — An analysis of transformations in the Australian urban water sector," Technological Forecasting and Social Change, Elsevier, vol. 103(C), pages 298-312.
    14. Boon, Frank Pieter & Dieperink, Carel, 2014. "Local civil society based renewable energy organisations in the Netherlands: Exploring the factors that stimulate their emergence and development," Energy Policy, Elsevier, vol. 69(C), pages 297-307.
    15. Bleda, Mercedes & del Río, Pablo, 2013. "The market failure and the systemic failure rationales in technological innovation systems," Research Policy, Elsevier, vol. 42(5), pages 1039-1052.
    16. Koen Frenken, 2016. "A Complexity-Theoretic Perspective on Innovation Policy," Papers in Evolutionary Economic Geography (PEEG) 1619, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2016.
    17. Binz, Christian & Diaz Anadon, Laura, 2016. "Transplanting clean-tech paths from elsewhere: The emergence of the Chinese solar PV industry," Papers in Innovation Studies 2016/29, Lund University, CIRCLE - Centre for Innovation Research.
    18. Steen, Markus & Weaver, Tyson, 2017. "Incumbents’ diversification and cross-sectorial energy industry dynamics," Research Policy, Elsevier, vol. 46(6), pages 1071-1086.
    19. Binz, Christian & Truffer, Bernhard & Coenen, Lars, 2014. "Why space matters in technological innovation systems—Mapping global knowledge dynamics of membrane bioreactor technology," Research Policy, Elsevier, vol. 43(1), pages 138-155.
    20. Karakaya, Emrah & Hidalgo, Antonio & Nuur, Cali, 2015. "Motivators for adoption of photovoltaic systems at grid parity: A case study from Southern Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 1090-1098.
    21. Marc Wolfram & Niki Frantzeskaki, 2016. "Cities and Systemic Change for Sustainability: Prevailing Epistemologies and an Emerging Research Agenda," Sustainability, MDPI, vol. 8(2), pages 1-18, February.
    22. Andrea G. Capodaglio & Arianna Callegari & Maria Virginia Lopez, 2016. "European Framework for the Diffusion of Biogas Uses: Emerging Technologies, Acceptance, Incentive Strategies, and Institutional-Regulatory Support," Sustainability, MDPI, vol. 8(4), pages 1-18, March.
    23. Rob Raven & Johan Schot & Frans Berkhout, 2012. "Breaking out of the national: Foundations for a multi-scalar perspective of socio-technical transitions," Working Papers 12-03, Eindhoven Center for Innovation Studies, revised Aug 2012.
    24. Stokes, Leah C., 2013. "The politics of renewable energy policies: The case of feed-in tariffs in Ontario, Canada," Energy Policy, Elsevier, vol. 56(C), pages 490-500.

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