*Message sent from a system outside of UConn.* SS07-11: State-driven decarbonization and spatial reconfiguration of industries
Godfrey Yeung, National University of Singapore Javier Revilla Diez, University of Cologne Yi Liu, Sun Yat-sen University The signing of the 2015 Paris Agreement, which imposes a 1.5oC limit of global warming target, creates the necessary condition for ratified countries to decarbonize their economies. Wind and solar power for energy generation is widely adopted in European countries. To have a realistic chance to reach the emission cut and achieve the Sustainable Development Goals (SDGs) on climate change (net zero emissions) by 2050, all countries realize the importance of a wider adoption of renewable energy on electricity generation. At the recently concluded COP26 summit in Glasgow, it is agreed that all countries should accelerate their efforts towards the phasing-down of usage of fossil fuels and inefficient fossil fuel subsidies. During the negotiation processes, 46 countries (but excluding China, India, the US and Australia) have signed a non-binding pledge to decarbonize their economies by phrasing out the use of thermal coal in unabated power generation by 2030 and 2040 for developed and developing countries, respectively. Moreover, 25 countries and development banks pledged to end public finance for new fossil fuel exploration and production overseas by the end of 2022. Global production network (GPN) is one of analytical frameworks to examine the spatial configuration of industries in economic geography. Inter-firm competition rather than direct state intervention have long been the crucial factor in the strategic coupling of global lead firms: suppliers and contractors in developing countries have to use local endowments to strategically link to lead firms and engage in GPNs (Coe et al., 2008; Yeung, 2016; Hamilton-Hart and Yeung, 2021). The spatial patterns of fossil fuel-depended industries could change under the accelerated drive for decarbonization. Different from other manufacturing sectors, states have been play a more pro-active role in the drive for decarbonization in developed and developing countries, from the provision of financial incentives to energy suppliers through feed-in tariffs and the tax allowance on the purchase of battery electric vehicles to the direct subsidies on the development of renewable industrial clusters. In addition to energy generation, there are some earlier signs for the changing market demand in the personal transport sector: battery electric vehicles account for a rising share for new passenger vehicle sale in the European market, from over 10% in Germany, France, the UK to over 20% in the Netherlands (and the ratio is as high as 75+% in the first mover Norway). The rising rivalry between the US (to a less extent the EU) and China highlights the importance of energy security during the accelerated transition to renewable energy in economic and energy policies. The drive for decarbonization could lead to a spatial reconfiguration of manufacturing GPNs, including the changing inter-firm competitive dynamics between developed and developing countries. The race for the establishment of renewable energy industries and the rapid electrification of the transport sector, which accounts for 25% of global greenhouse gas emissions, under the remit of energy security have further ramification on the state industrial policies. For instance, European governments have formed an alliance with global automotive giants for the establishment of electric vehicle battery gigafactories, the mass production of (green) hydrogen, and the development of next-generation batteries. In addition to the geopolitical tension, the recent severe shortage of semi-conductors underlines the importance of supply chains security in economic policies. This is especially the case when major economies are decarbonizing and this in turn could leading to a scramble for essential scarce raw materials, which in turn could lead to the spatial reconfiguration of mining GPNs, from thermal coal, liquefied petroleum gas and natural gas to lithium, cobalt, nickel, copper, polysilicon, etc. One of the challenges for the state is to calibrate the pace of adopting renewable energy and establishing the corresponding supporting infrastructures without compromising the energy security and supply chains security on the one hand and yet managing the shock on the (energy-intensive) industries relying on fossil fuels on the other hand. Existing literature, such as the disarticulation approach (Bair and Werner, 2011) and 'dark side' of GPNs (Coe and Hess, 2008; Phelps et al., 2018), is unable to reconcile the (potential) changes in the competitive dynamics of global economy under the accelerated drive for decarbonization. This CFP aims to address the following (inconclusive) issues related to the drive for decarbonization: · Roles of the state in decarbonizing the economy, including the formation of industrial clusters on renewable energy · Energy security: resilience and reliability of renewable energy networks, including its supply chains security (resources/mineral and technological dependency and decoupling of strategic industries) · Spatial reconfiguration of energy-intensive industrial clusters, e.g. (petro-)chemical, iron and steel, aluminium, automotive, cement, etc., partly as the result of changing financial landscape for fossil fuel and energy-intensive industrial projects · Spatial reconfiguration of manufacturing GPNs, including the changing inter-firm competitive dynamics · Spatial reconfiguration of mining GPNs and its implications for regional economic development · Knowledge transfer and information rents generated from the monopoly of intellectual property rights on intangible assets (Durand and Milberg, 2020) on renewable energy · Extraction of resources rents in resource regions/countries (Kaplinsky, 2019) and supply chains security (a challenge to resource curse thesis?) · Inward-oriented industrial policies and supply chains security · "Closed-loop" supply chains and its implications for the GPNs Please submit your (draft) abstract (up to 250 words) through https://nam10.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.gceg.org%2Findex.php&data=04%7C01%7C%7C4203372f2eee4956b03a08d9f1fd1f95%7C17f1a87e2a254eaab9df9d439034b080%7C0%7C0%7C637806891740118039%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C2000&sdata=F7MhzkmWoVkQTRyJOa4fSY%2FG%2BbukksBCFIayGaynA4E%3D&reserved=0 by 25th February 2022. References: Bair, J. and Werner, M. (2011) Commodity chains and the uneven geographies of global capitalism: a disarticulations perspective, Environment and Planning A, 43:988-997. Coe, N., Dicken, P., and Hess, M. (2008) Global production networks: realizing the potential. Journal of Economic Geography, 8:271-295. Coe, N. and Hess, M. (2011) Local and regional development: A global production networks approach. In Handbook of Local and Regional Development, Pike, A., Rodríguez-Pose, A. and Tomaney, J. (eds.), 128-138. London: Routledge. Durand, C. and Milberg, W. (2020) Intellectual monopoly in global value chains. Review of International Political Economy, 27(2): 404-429. Hamilton-Hart, N. & Yeung, H. W-c. (2021) Institutions under pressure: East Asian states, global markets and national firms, Review of International Political Economy, 28:1,11-35. Kaplinsky, R. (2019) Rents and inequality in GVCs In Handbook on global value chains, Ponte, S., Gereffi, G. and Raj-Reichert, G. (eds.), 153-168, Cheltenham: Edward Elgar. Phelps, N. A., Atienza, M., and Arias, M. (2018) An invitation to the dark side of economic geography. Environment and Planning A, 50:236-244. Yeung, H. W. C. (2016) Strategic Coupling: East Asian Industrial Transformation in the New Global Economy. Ithaca: Cornell University Press. __________________________________________________________________ Godfrey YEUNG (PhD), Associate Professor of Economic Geography Department of Geography National University of Singapore 1 Arts Link, Singapore 117570 Tel: +65-6516 7374 (direct line) Fax: +65-6777 3091 E-mail: geoy...@nus.edu.sg<mailto:geoy...@nus.edu.sg> Web: https://nam10.safelinks.protection.outlook.com/?url=http%3A%2F%2Fprofile.nus.edu.sg%2Ffass%2Fgeoykyg%2F&data=04%7C01%7C%7C4203372f2eee4956b03a08d9f1fd1f95%7C17f1a87e2a254eaab9df9d439034b080%7C0%7C0%7C637806891740118039%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C2000&sdata=O08tBZ5MvrAyEbRDCOh9ksT8MHbULs7Dml3h9zAyrA4%3D&reserved=0 Associate Editor, Singapore Journal of Tropical Geography: https://nam10.safelinks.protection.outlook.com/?url=http%3A%2F%2Fonlinelibrary.wiley.com%2Fjournal%2F10.1111%2F&data=04%7C01%7C%7C4203372f2eee4956b03a08d9f1fd1f95%7C17f1a87e2a254eaab9df9d439034b080%7C0%7C0%7C637806891740118039%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C2000&sdata=uv4MYpzLrqeCTJ4Zxix2qD3CriM%2F5VSPT3dPojgvsC0%3D&reserved=0(ISSN)1467-9493 Research group: Politics, Economies, and Space (PEAS): https://nam10.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.fas.nus.edu.sg%2Fgeog%2Fresearch%2Fpeas.html&data=04%7C01%7C%7C4203372f2eee4956b03a08d9f1fd1f95%7C17f1a87e2a254eaab9df9d439034b080%7C0%7C0%7C637806891740118039%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C2000&sdata=nq6UspdJKHAuuZBft1z%2FQwLa4grZjrgauZNQS12QodM%3D&reserved=0 Song, Y., Yeung, G., Zhu, D., Xu, Y. and Zhang, L. 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A Study of the Meditation Effect based on Green Patents in China", Journal of Cleaner Production, Vol. 339, article 130582. https://nam10.safelinks.protection.outlook.com/?url=https%3A%2F%2Fdoi.org%2F10.1016%2Fj.jclepro.2022.130582&data=04%7C01%7C%7C4203372f2eee4956b03a08d9f1fd1f95%7C17f1a87e2a254eaab9df9d439034b080%7C0%7C0%7C637806891740118039%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C2000&sdata=SKXabiNvpM3opF7nAf4M%2BvHGP2gHu14%2BdJx6QlJ%2Fm%2BY%3D&reserved=0 Liu, Y., Yeung, G., Liang, Y and Li, X. 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(2019) "'Made in China 2025': The Development of a New Energy Vehicle Industry in China." Area Development and Policy, 4(1):39-59. https://nam10.safelinks.protection.outlook.com/?url=https%3A%2F%2Fdoi.org%2F10.1080%2F23792949.2018.1505433&data=04%7C01%7C%7C4203372f2eee4956b03a08d9f1fd1f95%7C17f1a87e2a254eaab9df9d439034b080%7C0%7C0%7C637806891740118039%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C2000&sdata=zJ65%2Ffmj91wQY2OBMxqBVR3iv6%2FWzx5TsXKLWAxcF%2BA%3D&reserved=0 Bryson, J. R., Billing, C., Graves, W. and Yeung, G. (eds.) (2022) A Research Agenda for Manufacturing Industries in the World Economy. Cheltenham: Edward Elgar. https://nam10.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.e-elgar.com%2Fshop%2Fgbp%2Fa-research-agenda-for-manufacturing-industries-in-the-global-economy-9781789908503.html&data=04%7C01%7C%7C4203372f2eee4956b03a08d9f1fd1f95%7C17f1a87e2a254eaab9df9d439034b080%7C0%7C0%7C637806891740118039%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C2000&sdata=BJ8HBO4VXzylCbS2m8WknDntt740oiAmBVBzbqldqko%3D&reserved=0 Important: This email is confidential and may be privileged. If you are not the intended recipient, please delete it and notify us immediately; you should not copy or use it for any purpose, nor disclose its contents to any other person. Thank you.
