Is the Industrial Policy Suitable for the Industrial Chain? A Case Study from the Photovoltaic Industry in China—Evidence from Shenzhen

Yin Li, Yazhi Song and Qi Qin ()
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Yin Li: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China
Yazhi Song: Business School, Jiangsu Normal University, Xuzhou 221116, China
Qi Qin: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China

Energies, 2025, vol. 18, issue 10, 1-21

Abstract: Shenzhen is a pilot pioneer in China. Developing the photovoltaic industry is an important area for Shenzhen to address climate change; thus, the Shenzhen’s government issued a series of support policies. However, does the released policy promote the development of the Shenzhen photovoltaic industry? Starting from the guiding mechanism of industrial policy on the development of the industrial chain, this paper discusses the compatibility between industrial policy and the development of the industrial chain. Through the analysis of Shenzhen photovoltaic industry data, it is found that the total factor productivity of the Shenzhen photovoltaic industry is twice that of the Yangtze River Delta and the Pearl River Delta, and the life cycle of the industrial chain is lower than the national average. However, the concentration of Shenzhen’s photovoltaic industry in 2021 was less than two-thirds of that in 2013, and it is still declining. At the same time, Shenzhen has obvious advantages in the photovoltaic industry market, but the compatibility of industrial policies is insufficient. Therefore, the overall policy suitability of Shenzhen’s photovoltaic industry is poor. The policy adjustment should be based on improving the concentration of the regional photovoltaic industry and realizing the leapfrog development of the industry by encouraging photovoltaic enterprises to extend to both ends of the industrial chain.

Keywords: PV industry; industrial policy; industrial chain development; policy adaptability (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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