Going “green”: trade specialisation dynamics in the solar photovoltaic sector

The present study aims at providing a comprehensive analysis of trade flows and the domestic value creation of the major solar photovoltaic industry at the world level. Solar technologies convert light and heat from the sun into useful energy. The use of the sunʹs energy can not only reduce the consumption of conventional fuels, thus reducing the emission of detrimental greenhouse gases, but it can also enable a gain in enhanced fuel and energy security along with lessening costs. In addition, green technologies and industries can promote economic growth and international competitiveness, and can offer new business and employment opportunities. It becomes, therefore, extremely important to deeply explore the dynamics of the solar photovoltaic sector. Specifically, the present work analyses the main global trends of this sector and sketches the key players on the world market, including producers, installers, and top traders. Based on an analysis of trade flows at the 6-digit level, the international specialisation patterns are investigated, and the role of various market and trade drivers, including subsidies in the uptake of solar technologies, is identified and examined.