The photovoltaic (PV) industry has grown rapidly as a source of energy and economic activity. Since 2008, the average manufacturer-sale price of PV modules has declined by over a factor of two, coinciding with a significant increase in the scale of manufacturing in China. Using a bottom-up model for wafer-based silicon PV, the article examines both historical and future factory-location decisions from the perspective of a multinational corporation. The model used calculates the cost of PV manufacturing with process step resolution, while considering the impact of corporate financing and operations with a calculation of the minimum selling price that provides an adequate rate of return. The article quantifies the conditions of China's historical PV price advantage, examines if these conditions can be reproduced elsewhere, and evaluates the role of innovative technology in altering regional competitive advantage. The authors find that the historical price advantage of a China-based factory relative to a U.S.-based factory is not driven by country-specific advantages, but instead by scale and supply-chain development.
The Global Green Growth Institute and the Global Economy and Development program at the Brookings Institution have produced a brief which describes several ways that international cooperation can play a critical role in facilitating widespread innovation and implementation of new and appropriate
This brief describes several ways that international cooperation can play a critical role in facilitating widespread innovation and implementation of new and appropriate green growth technologies. It outlines six existing institutional structures that have been invoked as possible examples for scaling up to foster green innovation more broadly and suggests several policy recommendations that are feasible in the near term.
This study forms part of the European Commission’s on-going analysis of the opportunities to be gained from improving resource efficiency and how best to help businesses realise the economic potential, as well as environmental and social benefit. The study has examined the main resource efficiency measures available to EU business using a top-down review of literature on resource efficiency together with a bottom-up review of industry data and examples from case studies. Preliminary conclusions on measures were validated through limited industry consultation with EU-based businesses. The scope for businesses to improve resource efficiency has been assessed and the opportunity to business quantified through a business lens as new estimates of direct economic benefits. This research provides a new economic perspective to complement other published studies, a better insight into the impact on businesses of policies and programmes on resource efficiency, and an understanding of the relative effectiveness of resource efficiency measures and of the measures which might best suit particular businesses or sectors of the economy.
New business models can make an important contribution to the transition to green growth. While some new business models involve large firms, others are small start-up firms that seek to exploit technological or commercial opportunities that have been neglected or not yet explored by more established firms. New firms tend to engage in more radical innovation than existing firms, and scaling up new business models can therefore help reduce environmental pollution, optimise the use of natural resources, increase productivity and energy efficiency, and provide a new source of economic growth. Although the market for green goods and services is growing, the development of new business models is affected by a range of barriers, many of which can be addressed by well-designed policies.