Global economy saves $67 billion in solar panel production
The research published in ‘Nature’ focused on examining historically installed capacities, as well as data on input materials and selling prices for solar panel module installation in the United States, Germany and China – the three countries with the largest solar deployment – between 2006 and 2020. The research team estimated that the globalized solar supply chain saved countries a total of $67 billion: $24 billion in savings in the United States, $7 billion in Germany, and $36 billion in China.
If each of the three countries had adopted strongly nationalistic trade policies, the study adds, that limited cross-border learning over the same time period, solar panel prices in 2020 would have been significantly higher – 107% higher in the United States, 83% higher in Germany and 54% higher in China.
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A new study published in ‘Nature’ has calculated that the globalized supply chain saves countries 67 billion euros or dollars in solar panel production costs. The study – Europa Press reports – has also found that if strong nationalist policies limiting the free movement of goods, talent and capital are implemented in the future, solar panel costs will be much higher by 2030. The research focused on examining historically installed capacities, as well as data on input materials and selling prices for solar panel module installation in the United States, Germany, and China-the three countries with the largest solar deployment-between 2006 and 2020. The research team estimated that the globalized solar supply chain saved the countries a total of $67 billion: $24 billion in savings in the United States, $7 billion in Germany, and $36 billion in China.
John Helveston, lead author of the study and adjunct professor at George Washington University (USA): “What this study tells us is that if we are serious about combating climate change, policymakers must implement policies that promote collaboration across global value chains in terms of scaling up low-carbon energy technologies. Although this study focuses on one industry, solar, the effects we describe here are applicable to other renewable energy industries, such as wind and electric vehicles.”
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If each of the three countries had adopted strongly nationalistic trade policies, the study adds, that limited cross-border learning over the same time period, solar panel prices in 2020 would have been significantly higher-107% higher in the United States, 83% higher in Germany, and 54% higher in China, according to the study.
Gang He, associate professor at Stony Brook University and author of the paper: “Our research shows that international collaboration is critical to addressing global climate change. Nationalistic policies harm all countries and risk missing the most urgent climate goals.”
The research team also analyzed the economic implications of more protectionist trade policies in the future. They estimate that if strong nationalist policies are implemented, solar panel prices will be approximately 20-25% higher in each country by 2030, compared to a future with globalized supply chains.
Michael Davidson, assistant professor at the University of California, San Diego and co-author of the study: “Policies that cut off global value chains and restrict flows of people and capital will disrupt the global learning processes that have contributed precisely to solar’s success story. Models that demonstrate the feasibility of meeting ambitious clean energy targets are based on continued declining costs, which may not materialize if countries decide to go it alone.”
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The study builds on a 2019 paper published by Helveston in the journal ‘Science’, which called for greater collaboration with strong manufacturing partners such as those in China to rapidly lower the cost of solar power and accelerate the deployment of low-carbon energy technologies.
John Helveston, lead author of the study, “The new Inflation Reduction Act contains many important policies that support the development of low-carbon energy technologies in the United States, which is critical to addressing climate change and would introduce more innovation and capacity into the marketplace. What our study brings to this conversation is a reminder not to pursue these policies in a protectionist manner. Supporting the U.S. manufacturing base can and should be done in a way that encourages companies to trade with foreign partners to further accelerate cost reductions.”
Source: https://www.energias-renovables.com/fotovoltaica/la-economia-global-ahorra-67-000-millones-20221027
