What is behind the recent dramatic reductions in photovoltaic prices? The role of china

摘要: China is the largest solar photovoltaic (PV) producer in world, with more than 50% of world’s cell and module production. PV prices have experienced a sharp drop since 2010, reducing manufacturers margins forcing number U.S. European firms to declare bankruptcy. The purpose this paper explore role played by these recent dynamics particular reference incremental innovation vis-a-vis other factors like scale, vertical integration, cheap labour, favourable governmental policies or market demand/supply dynamics. A framework for analysis based on "technological capability" (TC) literature combines insights from survey conducted 2005 review interviews undertaken 2012 international experts. shows that labour has marginal cost Chinese products. Technological innovation, economies integration production capacity expansion been used as strategic tools reduce costs gain shares. industrial policy, boosted credit availability, also driver growth sector competitiveness.