IDEAS home Printed from https://ideas.repec.org/p/zbw/diedps/112013.html
   My bibliography  Save this paper

Exploring the effectiveness of local content requirements in promoting solar PV manufacturing in India

Author

Listed:
  • Johnson, Oliver

Abstract

In a bid to make renewable energy technology deployment strategies politically acceptable, many countries are linking them to socio-economic goals, such as job creation, economic development and building competitiveness. A controversial industrial policy tool that is becoming increasingly popular is the use of local content requirements (LCRs). These regulate the extent to which certain projects must use local products and are often justified on the basis of supporting local employment and private sector development. The debate has centred around the rights and wrongs of protecting infant industry, with little progress being made to find a common ground. This paper seeks to move beyond this stalemate to understand under which conditions LCRs might be a legitimate and effective tool for promoting local manufacturing. To do so, it applies an effectiveness framework to LCRs for solar photovoltaics in India’s National Solar Mission. The paper finds that for LCRs to be effective, they must be (a) limited in duration and incorporate planned evaluation phases, (b) focused on technologies and components for which technical expertise is available and global market entry barriers are manageable, (c) linked to additional mechanisms, such as training and promotion of business linkages and measures to support other stages of the value chain and wider services that are integral to success of renewable energy industries.

Suggested Citation

  • Johnson, Oliver, 2013. "Exploring the effectiveness of local content requirements in promoting solar PV manufacturing in India," IDOS Discussion Papers 11/2013, German Institute of Development and Sustainability (IDOS).
    • Handle: RePEc:zbw:diedps:112013
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/199397/1/die-dp-2013-11.pdf
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Sooriyaarachchi, Thilanka M. & Tsai, I-Tsung & El Khatib, Sameh & Farid, Amro M. & Mezher, Toufic, 2015. "Job creation potentials and skill requirements in, PV, CSP, wind, water-to-energy and energy efficiency value chains," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 653-668.
    2. Rasmus Lema & Björn Johnson & Allan Dahl Andersen & Bengt-Åke Lundvall & Ankur Chaudhary (ed.), 2014. "Low-Carbon Innovation and Development," Globelics Thematic Reviews, Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management, number low-carbon, July.
    3. Shrimali, Gireesh & Sahoo, Anshuman, 2014. "Has India׳s Solar Mission increased the deployment of domestically produced solar modules?," Energy Policy, Elsevier, vol. 69(C), pages 501-509.
    4. Maria Carvalho & Antoine Dechezleprêtre & Matthieu Glachant, 2017. "Understanding the dynamics of global value chains for solar photovoltaic technologies," Working Papers hal-01952975, HAL.
    5. Boute, Anatole & Zhikharev, Alexey, 2019. "Vested interests as driver of the clean energy transition: Evidence from Russia's solar energy policy," Energy Policy, Elsevier, vol. 133(C).
    6. Scheifele, F. & Bräuning, M. & Probst, B., 2022. "The impact of local content requirements on the development of export competitiveness in solar and wind technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    7. Hansen, U.E. & Nygaard, I. & Morris, M. & Robbins, G., 2020. "The effects of local content requirements in auction schemes for renewable energy in developing countries: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 127(C).
    8. Quitzow, Rainer, 2015. "Assessing policy strategies for the promotion of environmental technologies: A review of India's National Solar Mission," Research Policy, Elsevier, vol. 44(1), pages 233-243.
    9. Bhupesh Verma & Ganeshprasad Pavaskar & Tobi Oluwatola & Aimee Curtright, 2017. "State-level Policy Analysis for PV Module Manufacturing in India," Working Papers id:12193, eSocialSciences.
    10. Kalyuzhnova, Yelena & Azhgaliyeva, Dina & Belitski, Maksim, 2022. "Public Policy Instruments for Procurement: An Empirical Analysis," Technological Forecasting and Social Change, Elsevier, vol. 176(C).

    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:zbw:diedps:112013. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/ditubde.html .

    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.