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DTSTART;TZID=Europe/Berlin:20240612T100000
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DTSTAMP:20240531T091009Z
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UID:10000293-1718186400-1718191800@whatworksclimate.solutions
SUMMARY:Does policy design matter for the effectiveness of local content requirements? A qualitative comparative analysis of renewable energy value chains
DESCRIPTION:Green industrial policies aim to create local value from renewable energy technologies. Local content requirements (LCR) aim to foster domestic industries by prescribing a minimum share of locally manufactured inputs for investments in renewable energy. However\, the policy effectiveness of LCR differs. Whilst they fostered local industries with rising exports in some countries these goals have not been reached in others. This paper analyses whether differences in LCR’s effectiveness can be explained by policy design elements and interaction with political economy factors. The paper contributes novel insights on necessary and sufficient conditions for LCR policies’ effectiveness in wind and solar energy value chains. It is based on the first qualitative comparative analysis on the topic\, covering 27 cases between 1995 and 2017. The analysis reveals that LCR are only effective in fostering green domestic industries if the enforced share of locally manufactured components is not too high\, or when applied in countries with related industries. Furthermore\, the paper outlines combinations of policy design elements that are sufficient for policy effectiveness even in challenging political economy contexts. These insights on context-specific policy designs for LCR effectiveness are relevant for policy design theory as well as for policymakers and industry experts.
URL:https://whatworksclimate.solutions/presentation/does-policy-design-matter-for-the-effectiveness-of-local-content-requirements-a-qualitative-comparative-analysis-of-renewable-energy-value-chains/
LOCATION:H 0104 (Elinor Ostrom Hall)
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