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Sustainable Innovation

Local Content Requirements in the Renewable Energy Sector: Using Economic Complexity to assess the fit of LCRs to the productive capacities in developing and emerging economies

Montag, 28. Dezember 2020

This project aims to assess to which extent Local Content Requirements (LCR), a industrial policy that increasingly is being employed by governments in developing and emerging economies to create local manufacturing capacities, in the Renewable Energy Sector match with the capacities and opportunities of these countries. To examine this question, the project will make use of the concept of Economic Complexity (Hausmann et al. 2011, Hidalgo et al. 2007), which provides a very granular view on complexity levels of more than 1000 product groups using UN Comtrade export data.

Analysing economic complexity data of around 130 renewable energy products for 10-15 countries, the project shall provide new evidence to the question to which extent industrial policies (here more specifically LCR), fit with the current or near-term export structure of the countries that employ them and also what alternative diversification pathways countries may take.

For this project, basic skills in the statistical programming software R are required (i.e. previously employed in a seminar paper or a bachelor thesis)

For further information please contact .

By: Fabian Scheifele

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