The Importance of Policy in Delivering on the Clean Energy Economy

The document analyzes the relationship between national policy frameworks and the growth of solar PV and wind industries across five major economies. It contrasts the success of comprehensive, stable policies in Germany and China with the less effective, short-term 'patchwork' approach used in the United States. Data from 2005 and 2011 show that while China has achieved massive manufacturing capacity, Germany's stable legal framework has been a key driver for its industry, and the US lacks long-term national predictability due to incentives requiring frequent re-authorization.

• Germany's success in building its clean energy industry is attributed to a comprehensive, stable, and predictable policy framework, including a national renewable energy law with feed-in tariffs and tax incentives.
• The United States employs a patchwork of short-term policies that are considered less effective and more costly than stable frameworks, as many key incentives must be re-authorized every 2-3 years to prevent expiration.
• China's policies and incentives have driven exponential growth in manufacturing, though this has led to global oversupply and some issues with lower quality.
• India has the potential to be a larger global competitor, but its growth is hindered by inconsistent policies at the state and national levels, as well as limitations in finance and infrastructure.
• Japan experienced a stagnation in solar installations after eliminating long-term solar PV support policies in the mid-2000s to prioritize nuclear energy, though it maintained high export capacity.

APA

World Resources Institute (n.d.). The Importance of Policy in Delivering on the Clean Energy Economy. https://files.wri.org/d8/s3fs-public/resources/factsheet_for_ocn_clean_tech_launch_-_fmted.pdf

Chicago

World Resources Institute. The Importance of Policy in Delivering on the Clean Energy Economy. n.d. https://files.wri.org/d8/s3fs-public/resources/factsheet_for_ocn_clean_tech_launch_-_fmted.pdf.

Wikipedia

{{cite report |author=World Resources Institute |title=The Importance of Policy in Delivering on the Clean Energy Economy |url=https://files.wri.org/d8/s3fs-public/resources/factsheet_for_ocn_clean_tech_launch_-_fmted.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendimportance, author = {{World Resources Institute}}, title = {{The Importance of Policy in Delivering on the Clean Energy Economy}}, institution = {World Resources Institute}, url = {https://files.wri.org/d8/s3fs-public/resources/factsheet_for_ocn_clean_tech_launch_-_fmted.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }