ABSTRACT Polycentricity can be beneficial for analyzing the structures and interactions of multiple decision-makers and for achieving efficient outcomes. In contrast, polycentric governance may not function properly under specific conditions such as external shocks and inadequate institutions. Here, governments can play a significant role in overcoming the vulnerability of polycentric systems. This study uses a case of photovoltaic panel recycling and comprehensively understands the roles of governments in polycentric settings. Polycentricity explains that photovoltaic panels can be efficiently installed and operated through the voluntary transactions of multiple decision-makers. However, the polycentric vulnerabilities can emerge during the recycling stage of solar panel wastes due to shifts in socio-economic factors and limited regulatory capacities. This study suggests that redesigning policy package can empower governments to address the weaknesses of polycentric governance. It highlights the potential application of polycentric governance to energy and environmental management, and emphasizes the significance of governmental intervention for efficient governance.
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