A Model of Competition in the Solar Panel Industry

Unni Pillai () and Jamison McLaughlin

MPRA Paper from University Library of Munich, Germany

Abstract: We develop a model of competition in the solar panel industry. Solar firms manufacture panels that are differentiated both vertically and horizontally, and compete by setting quantities. The equilibrium of the model is consistent with a set of stylized facts that we document, including variation in prices, markups and market shares across firms. We calibrate the model using a new dataset data on prices, costs and shipments of leading solar companies, as well as solar sales in four leading markets. The calibrated model is applied to evaluate the impact of a decline in the price of polysilicon, a key raw material used in the manufacture of solar panels, on the equilibrium price of solar panels.

Keywords: Solar; Photovoltaics; Competition; Polysilicon (search for similar items in EconPapers)
JEL-codes: L11 Q40 Q42 (search for similar items in EconPapers)
Date: 2013-05
New Economics Papers: this item is included in nep-com, nep-ene and nep-ind
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Citations: View citations in EconPapers (11)

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Journal Article: A model of competition in the solar panel industry (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:46655

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