Solar photovoltaics have emerged as a promising renewable technology for mitigating greenhouse gas emissions and curbing climate change. The total installed PV capacity in the world has increased from 1. GW in 2000 to 39. GW in 2010. Manufacturing of solar PV panels competes with semiconductor industry for raw materials and resources.
Solar photovoltaics have emerged as a promising renewable technology for mitigating greenhouse gas emissions and curbing climate change. The total installed PV capacity in the world has increased from 1. GW in 2000 to 39. GW in 2010. Manufacturing of solar PV panels competes with semiconductor industry for raw materials and resources.
Solar photovoltaics have emerged as a promising renewable technology for mitigating greenhouse gas emissions and curbing climate change. The total installed PV capacity in the world has increased from 1. GW in 2000 to 39. GW in 2010. Manufacturing of solar PV panels competes with semiconductor industry for raw materials and resources.
Competition for Indium Between Solar Photovoltaics and LCDs: Economic and Environmental Consequences
Gaurav Satija Purdue University, gsatija@purdue.edu Jevgenijs Steinbuks The World Bank, steinbuk@gwmail.gwu.edu Fu Zhao Purdue University, fzhao@purdue.edu
Abstract. Solar photovoltaics (PV) have emerged as a promising renewable technology for mitigating greenhouse gas emissions and curbing climate change. The total installed PV capacity in the world has increased from 1.5 GW in 2000 to 39.5 GW in 2010, which corresponds to an annual growth rate of 40%. In addition, many countries have introduced policies (e.g. feed-in tariffs, higher electricity purchasing price, and rebates on installation) to further encourage the development of the solar PV market. Though solar PV seems to be an attractive energy solution, it has its own challenges. Manufacturing of solar PV panels competes with semiconductor industry for raw materials and resources. For example, the production of CIGS thin film solar panels directly competes for indium with the manufacturing of liquid crystal displays. The increasing demand of PV raw materials in the globalized world can lead to greater resource scarcity and higher prices, all of which can hinder the further cost reduction potential of PV panels and challenge its economic sustainability. On the other hand, to maintain sufficient supply, it is very likely that more complicated processes are needed to extract these metals. This will not only further increase the production cost but also lead to larger environmental footprints.
There are two key interconnected issues that have to be considered when modeling the economic and environmental effects of widespread deployment of solar PV technologies. The first issue is how the manufacturers of solar PV respond to the changes in cost and demand conditions. The other is how solar PV competes against other renewable energy technologies under different policy scenarios. To address these issues we adopt a dynamic partial equilibrium (DPE) model. This global forward-looking model analyzes the economic decisions in five sectors critical to deployment of solar PV technologies in the long run. The mining sector extracts rare metals (e.g., indium) necessary for production of semiconducting materials, and coal, which is further combusted to satisfy electricity demand. The mining sector is characterized by Hotelling model of optimal resource extraction with limited potential reserves. The materials engineering sector produces intermediate components (e.g., indium tin oxide, ITO) that can be used for either solar panels or in consumer electronics. The electronic equipment sector uses these intermediate components to produce the final consumer goods (e.g. flat-screen TVs or LCD monitors) and solar PV panels. We assume that expansion of the electronic equipment sector brings advances in material science, which, in turn, further extends the efficiency of intermediate components in production of LCD monitors and solar PV panels. The solar electricity sector uses the solar PV equipment to produce electricity. The conventional electricity sector produces electricity from combustion of coal. The electricity sector combines the services from the solar and the renewable electricity sectors to produce electricity services used in final demand. We assume that energy services from the conventional and renewable electricity are close imperfect substitutes. The model chooses optimal path of indium and coal extraction, and If applicable, page number will go here after aggregating all papers Competition for Indium Between Solar Photovoltaics and LCDs: Economic and Environmental Consequences production of intermediate inputs to maximize consumption of electricity and LCD screens over the course of this century. Our study demonstrates the importance of resource scarcity for global potential of Solar PV deployment in the long run. These issues were generally neglected in previous studies, which focused mostly on short- and medium-term effects, such as e.g. adaptation of transmission grids to intermittent power supply of Solar PV.
Proceedings of the International Symposium on Sustainable Systems and Technologies (ISSN 2329-9169) is published annually by the Sustainable Conoscente Network. Melissa Bilec and J un-Ki Choi, co-editors. ISSSTNetwork@gmail.com.
Copyright 2014 by Author 1, Author 2, Author 3 Licensed under CC-BY 3.0. Cite as: Competition for Indium Between Solar Photovoltaics and LCDs: Economic and Environmental Consequences Proc. ISSST, Name of Authors. Doi information v2 (2014) If applicable, page number will go here after aggregating all papers
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