 Why industrial location matters in a low-carbon economyChristopher James Day Structural Change and Economic Dynamics, 2022, vol. 63, issue C, 283-292 Abstract: Reductions in freight transportation costs have favoured agglomeration and radically decreased the requirement for production activities to take place adjacent to natural resources. As the world transitions towards a low carbon economy, with energy generated from renewable sources, this could change. The cost of transporting renewable energy is relatively high. This creates a significant competitive advantage for regions which can combine surplus clean energy resources with strong institutions and developed capital markets. My findings show renewable energy is both heterogeneously distributed, and its transport costs significantly alter the price of undertaking industrial activities in locations without surplus renewable energy generation capacity. This has major implications for the organisation of global value chains and suggests that future models of industrial location would benefit from incorporating this dynamic. Keywords: Location theory; Spatial economics; Economic geography; Climate change; Renewable energy; Global value chains; Industrial strategy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:63:y:2022:i:c:p:283-292 DOI: 10.1016/j.strueco.2022.10.004 Access Statistics for this article Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen More articles in Structural Change and Economic Dynamics from Elsevier |
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