Do favorable land price policy affect renewable energy industry? Evidence from photovoltaics

• We identify the success of China's favorable land price policy for photovoltaics.
• We view that two political and institutional factors lead to favorable land price policy successes.
• A multiple-linear regression model to examine the effects of favorable land price policy on industry was developed.
• We identify three major failures of China's favorable land price policy.
• Need adjunct policies to lower favorable land price policy risk.

Renewable energy is necessary for sustainable social and economic development. This is particularly so with global energy shortages, the continuous deterioration of ecosystems and the environment, as well as the world population explosion. This article qualitatively and quantitatively analyzes the effects and problems of Chinese favorable land price policy on photovoltaics. In examining the favorable land price policy in China, this study develops a multiple-linear regression model to study the effects of favorable land price policy on photovoltaic power and photovoltaic industry. Data used in this research was mainly collected from 20 provinces in China. It is found that the development of PV in China has been greatly affected by the favorable land price policy. In the end, it is highly recommended that favorable land price policy should be continued for renewable energy. Systemic deficiencies can be overcome through continual reform and innovation of mechanisms.