Decarbonizing Growth in Mexico

human development, climate change

The market development of avaition biofuel: drivers and constraints

Aviation biofuel is technically viable and nearing the commercial stage. In the last ten years, biofuels have moved from relative obscurity to a point where certain types of fuel have become fully certified for commercial use in up to 50% blends with standard jet fuel and commercial partnerships between airlines and biofuel producers are being established. Yet despite numerous successful test flights, aviation biofuels have yet to become widely commercialised. Drawing on the findings of in-depth interviews with leading global aviation biofuel stakeholders undertaken between October and December 2011, this paper identifies and examines the perceived factors that are affecting the market development of biofuels for aviation. The paper illustrates that market development is being driven by the combined effects of rising jet fuel prices, the potential future impact of emissions legislation and concerns about fuel (in)security. However, commercialisation is being constrained by high production costs, limited availability of suitable feedstocks, uncertainty surrounding the definition of the sustainability criteria, and a perceived lack of both national and international political and policy support for aviation biofuel. The implications of these findings for commercial aviation and the future development of global market for aviation biofuel market are discussed

Analysing the Impact of the World Trade Organisation (WTO) on the Sustainability of Competitiveness of the Petrochemical Industry in Saudi Arabia

Saudi Arabia undertook measures to liberalize its economy in order to be a part of the WTO, which were carried out in a gradual manner long before the country was accepted as a member of the organization. The reform measures are still being implemented and the economy opening up to foreign investors. The WTO accession has enhanced the optimism of the investors towards the benefits that are expected to be achieved from this membership. The stock market has already responded to these changes through a positive signal and a higher level of foreign direct investment (FDI) is expected in the coming years. This flow of investment will provide an opportunity for diversification of the oil rich economy of Saudi Arabia. Saudi Arabia has been gradually growing into a centre for production of petrochemicals in the world. Owing to the competitive and none fluctuating price of natural gas, investments in olefins and derivatives have increased, which also bring high returns. The aim of this research, hence, is to analyse the impact of Saudi Arabia’s accession to the WTO on the petrochemical industry, and to analyse whether the competitiveness of the industry is sustainable under these new circumstances. In doing so, this study also analysis the strengths, weaknesses, opportunities and threats of the industry with the objective of identifying the competitive advantage of Saudi Arabian petrochemical industry by utilizing Porter’s model. The study also provides a discussion on the possible steps that the government might take towards establishing an economy conducive to foreign investment, competition for the growth of the petrochemicals industry. In responding to the aims and objectives of the study, both the qualitative and quantitative approaches were used. The qualitative analysis includes an analysis of expert opinions collected through elite interviews using semi-structured questionnaires. All these are structured to obtain the opinions of 20 participants regarding the trends and developments of the petrochemical industry and the related policies undertaken by the government. The quantitative analysis includes collecting secondary data for exports and imports of products of the industry along with relevant secondary data analysis of some of the leading petrochemical companies. The results of the analyses at various levels demonstrate that the petrochemicals industry has the potential to contribute to the gross output, diversification of the economy and the sources of earnings, and hence reducing the dependency on oil as the only source of income. In addition, the analysis shows that the industry has potential for the creation of jobs, new openings for investments in businesses, opening up the domestic markets towards certain new products and at the same time bringing down the reliance on imports. Furthermore, the qualitative analysis shows that government has already taken steps towards promotion and encouragement of FDI inflow in the industry but several other measures related to infrastructure and security factors need to be adopted. The nation already enjoys competitive advantages and benefits of location advantages apart from the cost advantage in oil extraction and petrochemicals production. Accession of Saudi Arabia to the WTO as a member country has opened the economy to the outside competition and the petrochemical industry was supposed to be getting the gains from trade and open economy. The global investors have demonstrated their optimism about investment in Saudi Arabia. The existing opportunities in the petrochemical sector will receive a boost apart from diversification of the oil-based economy. The country is gradually becoming a booming centre of petrochemical industry and the growth is exponential. Technological barriers are gradually broken and the industry is moving towards sustainable development. Owing to the competitive pricing of the natural gas sector and cheap availability of feedstock have made it a lucrative place for investment in petrochemical production. However, it will take some more years to realize the full benefit of the accession to the WTO as complementary sectors are also being developed. The membership has however opened the strengths as well as the weaknesses of Saudi’s petrochemical industry to the entire world. Thus, the membership brings on greater transparency, enabling easier and faster assessment and remedies

Cluster development: a case of Singapore’s petrochemical industry

This paper rejuvenates the existing discussion on the importance of cluster approach to industry development strategies. There is growing evidence that the shape of economic policy and practice is changing significantly around the world. Governments continually search for new tools and policy formulas to improve economic performance and create economic prosperity for all citizens. In this context a more proactive and strategic role for government in support of the cluster-based economic development model has emerged. This paper uses Singapore’s petrochemical industry as an example to study the cluster approach to industry development. In doing so, there is much optimism to the importance of state and its institutions to play a significant role on industry development

The New Face of Chinese Industrial Policy: Making Sense of Anti-Dumping Cases in the Petrochemical and Steel Industries

Why have China's petrochemical and steel industries behaved so differently in seeking trade protection through antidumping measures? We argue that the patterning of antidumping actions is best explained in terms of the political economy of economic restructuring in pillar industries and its effect on industry structures. In the petrochemical industry, the shift toward greater horizontal consolidation and vertical integration reduces the collective action problems associated with antidumping petitions among upstream companies. It also weakens downstream companies lobbying in favor of the general protection of highly integrated conglomerates. In the steel industry, by contrast, national industrial policy in the absence of exogenous economic shocks fails to weaken local state interests sufficiently. Fragmented upstream and downstream channels instead persist, with strong odds against upstream suppliers waging a successful defense of material interests.

Are exporting firms always a good hedge against currency risk? Evidence from Central and Eastern European Countries

This paper analyzes the exchange rate exposure of exporting firms in (the so far rarely addressed) largest Eastern European transition economies, i.e. Russia and three EU accession countries (CEEC-3). It also controls for possible effects of different exchange rate regimes. Substantially improving the results from the existing literature we find for more than 80% of firms in our sample a significant exchange rate exposure. However, the magnitude and direction of firms’ exposure depends on the particular exchange rate and clearly differs between Russia and the CEEC-3. We find that share prices increase with a depreciation of the domestic currency and only against the US Dollar in Russia, but decrease with a depreciation and only against the Euro in the CEEC-3. Such substantial differences may result from a differing dominance of exposure channels in the respective economies, such as the country-specific export structure and foreign debt. Finally, the switch from a pegged to a flexible exchange rate regime appears to be less important for exposure

Opportunities for Dutch Biorefineries

Deze Roadmap Bioraffinage beschrijft een aantal mogelijke routes naar de ontwikkeling en implementatie van een bioraffinage-gerelateerde Bio-based Economy in Nederland. De Roadmap combineert korte- en middellange termijn mogelijkheden (commerciële implementatie, demonstratie plants, pilot plants en gerelateerd toegepast onderzoek) met strategisch onderzoek voor de langere termijn. Tevens zijn vier z.g. Moonshots uitgewerkt, als voorziene bioraffinagestrategieën met een grote potentie voor de Nederlandse economi

Petrochemicals and climate change: Powerful fossil fuel lock-ins and interventions for transformative change

With the risk of climate breakdown, pressure is increasing for all sectors of the economy to break with fossil fuel dependence and reduce greenhouse gas emissions. In this context, the chemical industry requires more focused attention as it uses more fossil-fuel based energy than any other industry and the production of chemicals is associated with very large emissions. Beyond the climate crisis, the chemical industry significantly impacts several critical dimensions of sustainability, including the planetary boundaries for novel entities, biosphere integrity, and ocean acidification. In this report, we focus on the petrochemical sector, which represents the largest share of the chemicals industry and is generally understood to refer to the part of the industry that relies on fossil-fuel feedstocks from oil, gas, and coal. The petrochemicals sector produces chemicals mainly used for plastics and fertilisers, but the products also end up in paints, pharmaceuticals, pesticides, and other applications. This report provides a critical exploration of the petrochemical sector to strengthen awareness of its relevance to the climate crisis and to provide tools and recommendations for decision-makers in different domains to initiate, support, and accelerate much-needed transformation. The report highlights the rapid expansion of the petrochemical sector as well as the range and growth of economic, infrastructural, and political interlinkages with the fossil fuel extraction sector. It argues that these developments and dynamics are crucial to understanding pathways, strategies, and interventions for a low-carbon transition for petrochemicals

Navigation in new terrain with familiar maps: Masterminding socio-spatial equality through resource oriented innovation policy.

This paper explores how political struggles influence innovation policy through a Norwegian case study on the formation of a state-funded research and development program for utilizing natural gas feedstock from the North Sea. Despite the apparent dominance of business, specialized branches of the state, and R&D institutions in the realm of innovation policy, the key argument of this paper is that labor unions and regional interests exert considerable influence in shaping national innovation policy, in particular when reflexively exploiting new forms of state accumulation strategies while retaining a defensive stance against deindustrialization. First, we argue that the struggle for state funding to natural-gasbased R&D was particularly effective because appropriate strategic political networks and alliances were mobilized. Second, the construction of strategic arguments to accommodate the social corporatist heritage of state intervention on the one hand and the competitionoriented language of flexible specialization on the other, proved crucial for acceptance as a state strategy. The paper engages a Strategic– Relational Approach to state theory and argues that this is a useful starting point when studying how particular contexts affect how and why certain innovation policies emerge. In doing so, we also address the lack of political analysis in innovation studies.