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Employment under vertical and horizontal transfer of concentrated solar power technology to North African countries

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  • Komendantova, Nadejda
  • Patt, Anthony

Abstract

The process of renewable energy technology transfer to developing countries can influence the industrialization of their economies and the reduction of their greenhouse gas emissions. There are current plans to deploy large-scale solar and wind capacities in the North Africa countries, including the Mediterranean Solar Plan on the public side and the Desertec Industrial Initiative on the private side. We analyse both plans from a technology transfer perspective, drawing a distinction between vertical transfer – in which intellectual property and manufacturing capacity remains in industrialized countries – and horizontal transfer, in which manufacturing and development skills shift to the developing countries. We find that horizontal technology transfer, when 40% and more of all components are manufactured locally, would bring significantly higher number of job-years to North Africans than vertical technology transfer, and that the greatest number of jobs are induced in the service industries. However, the total job creation will still not provide jobs to all unemployed people in the entire region. A case study of Morocco suggests, however, that employment effects could be important for any country that gains a disproportionate share of new investment. Recent policy developments in North Africa show that national governments started to take into consideration possibilities and benefits of horizontal technology transfer by launching plans of industrial development and introducing the rule of local compensation, which foresees a share of components for large-scale projects to be manufactured locally and by North African enterprises.

Suggested Citation

  • Komendantova, Nadejda & Patt, Anthony, 2014. "Employment under vertical and horizontal transfer of concentrated solar power technology to North African countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 1192-1201.
  • Handle: RePEc:eee:rensus:v:40:y:2014:i:c:p:1192-1201
    DOI: 10.1016/j.rser.2014.07.072
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    References listed on IDEAS

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    1. Karakosta, Charikleia & Doukas, Haris & Psarras, John, 2010. "Technology transfer through climate change: Setting a sustainable energy pattern," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(6), pages 1546-1557, August.
    2. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    3. Komendantova, Nadejda & Patt, Anthony & Barras, Lucile & Battaglini, Antonella, 2012. "Perception of risks in renewable energy projects: The case of concentrated solar power in North Africa," Energy Policy, Elsevier, vol. 40(C), pages 103-109.
    4. Kevin Ummel & David Wheeler, 2008. "Desert Power: The Economics of Solar Thermal Electricity for Europe, North Africa, and the Middle East," Working Papers 156, Center for Global Development.
    5. Komendantova, Nadejda & Patt, Anthony & Williges, Keith, 2011. "Solar power investment in North Africa: Reducing perceived risks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4829-4835.
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    Cited by:

    1. repec:eee:rensus:v:81:y:2018:i:p1:p:1087-1095 is not listed on IDEAS
    2. George A. Gonzalez, 2016. "Transforming Energy: Solving Climate Change with Technology Policy . New York : Cambridge University Press . 360 pages. ISBN 9781107614970, $29.99 paperback. Anthony Patt , 2015 ," Review of Policy Research, Policy Studies Organization, vol. 33(1), pages 111-113, January.
    3. repec:eee:rensus:v:91:y:2018:i:c:p:987-1018 is not listed on IDEAS

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