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Value Chains for the Energy Transition Opportunities for Latin America in a Changing Landscape

This paper proposes a comprehensive framework for identifying and analyzing opportunities for Latin America and the Caribbean (LAC) to integrate into global clean value chains (CVCs). The analysis finds that opportunities for LAC countries to participate in CVCs exist, but they are highly concentrated by country and industry segment—particularly in wind turbines and batteries. The solar industry seems to offer broader opportunities across more countries and segments, but still with a significant degree of concentration. Key to the paper’s findings is the critical role of link variables like economic proximity in facilitating LAC’s participation in CVCs. It argues for a policy approach that includes elements of conventional industrial policy and goes beyond traditional measures aimed at fostering macroeconomic stability and correcting market failures. These involve encouraging collaboration with high-potential companies that could act as anchors in crucial CVC areas and addressing challenges like geographical distance through strategic interventions in logistics and connectivity. Finally, the paper aims to contribute methodologically to the understanding of the dynamics governing industrial opportunities in clean energy. The proposed framework can be applied to investigate other technologies and value chains and can set the stage for a more nuanced discussion on how to refine strategies, policies, and interventions to enhance LAC’s effective insertion into CVCs.

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Comercio internacional | Desarrollo | Economía

País / Región

América Latina y el Caribe

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https://scioteca.caf.com/handle/123456789/2233

Date

2024-04-24

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6.5 Documentos de trabajo en políticas públicas

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CC-BY-NC-ND
Except where otherwised noted, this item's license is described as CC-BY-NC-ND
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VALUE CHAINS FOR THE ENERGY TRANSITION- .pdf (1.93 MB)

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