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Risks in the development of Chinese photovoltaic industry: a perspective from low–carbon incentive policies

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Photovoltaic industry based on the utilisation of solar power has an abundant and renewable energy resource and advantage in environmental protection. This paper seeks to elaborate on the status quo of Chinese PV industry and, including the trait of low carbon, the development in China and the risks existed in Chinese PV industry. Then, a simulation of risks in the development of Chinese PV industry is done by employing evolutionary game and system dynamics. Finally, several resolutions are put forward to tackle these risks: 1) merging and re–organisation; 2) optimising incentive policies; 3) strategic alliance; 4) shifting market focus from Europe to Asian–Pacific region and domestic market; 5) adjusting industrial structure.

Keywords: photovoltaic industry, low carbon incentives, risk assessment, China, PV industry, solar power, solar energy, evolutionary game, system dynamics, mergers, photovoltaics, re–organisation, strategic alliances, market focus, industrial structure

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