About this event
Solar panel production costs have experienced a dramatic decline in the last two decades. This trend is concomitant with the remarkable rise of China as a global solar producer, in part sparked by industrial policies. We study the impact of the introduction of subsidies for the solar manufacturing sector in China on innovation, emissions reduction, and output at the global level. We use firm-level patent data to show that the increase in Chinese competition in the solar PV manufacturing sector driven by the policy had a negative impact on innovation in the rest of the world. Building on this observation, we develop an open economy growth model with endogenous innovation in solar energy technologies to evaluate the overall effect of Chinese industrial policies on solar panel costs through their effects on domestic and foreign innovation, combined with their effects on production.
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This event will take place in SAL 2.04, 2nd Floor Conference Room, Sir Arthur Lewis Building, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH.
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SAL
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