China and the energy matrix in Latin America: Governance and geopolitical perspective

Oscar Ugarteche, Carlos de León and Joselin García

Energy Policy, 2023, vol. 177, issue C

Abstract: The importance of energy for States is fundamental. The proper functioning of production depends on energy security and energy policies. It is an object of geopolitics to control a region's production strategically. With the fight against climate change, green energy policies became relevant. In Latin America, the energy supply has various fossil and non-fossil fuels, primarily hydroelectric and alternative renewables. Energy demand is weak for EVs and mass transport vehicles. The energy matrix change process is led by China in Latin America, with a powerful presence through both credits and investments, both in renewable energy generation and the demand for EVs. Generally, she has invested the most money in energy in the world. Theoretically, there is a geopolitical issue as China has stepped into the US “backyard”. The result is that the energy matrix change has implications for domestic taxation, international trade, and inter-American relations. Chinese foreign direct investment (FDI) in Latin America has concentrated mainly on renewable energy since 2015, with strong resistance from the United States.

Keywords: Energy; Geopolitics; Issues in international trade; Renewable resources and conservation; Natural resources and domestic and international conflicts (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:177:y:2023:i:c:s0301421523000204

DOI: 10.1016/j.enpol.2023.113435

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