Mainstreaming solar: Stretching the regulatory regime through business model innovation
Huijben, J.C.C.M. Verbong, Geert P.J. Podoynitsyna, Ksenia
Huijben, J.C.C.M.
Verbong, Geert P.J.
Podoynitsyna, Ksenia
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Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2016
Journal
Environmental Innovation and Societal Transitions
Book
Publication Volume
20
Publication Issue
Publication Begin page
1
Publication End page
15
Publication NUmber of pages
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Abstract
This paper explores how the regulatory regime for Solar PV, defined as a combination of niche shielding and mainstream regulations, affects niche business models, using the Dutch and Flemish regulatory regimes as examples. The regulatory regime does not influence all components of the business model: only one or two components are usually affected. The level of niche shielding influences the dominant niche empowerment strategy. We also identified substantial heterogeneity in fit-and-conform and stretch-and-transform empowerment strategies for dealing with the regulatory regime. These strategies are reflected in business models, and differ in terms of temporal focus, motivation and shielding characteristics targeted. Finally, we show that business model innovation, sometimes in combination with technological innovation, can be used for stretching the regulatory regime. Organizational components of the business model are usually redesigned for this purpose.
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Keywords
Solar PV, Up-scaling, Regulatory regime, Niche empowerment, Business model innovation