Challenges of Low Carbon Technology Diffusion : Insights from Shifts in China’s Photovoltaic Industry Development

Large scale diffusion of low carbon technologies (LCTs) is an important element of strategies to mitigate climate change. However, diffusion of LCTs faces a number of barriers especially in developing and emerging countries. The Chinese photovoltaic (PV) paradox is an illustrative example for this dilemma: China is the largest producer of PV cells and modules in the world. However until recently China did not have considerable PV energy installations. The paper analyzes barriers related to technology, policy and politics that hindered solar PV energy use before 2009 and factors that since helped to overcome these barriers. Based on the Chinese solar PV experience the paper argues that diffusion of LCTs in developing and emerging countries demands for a holistic approach and can sometimes be triggered by developments largely unrelated to climate change considerations