IDEAS home Printed from https://ideas.repec.org/a/eee/streco/v63y2022icp283-292.html
   My bibliography  Save this article

Why industrial location matters in a low-carbon economy

Author

Listed:
  • DAY, Christopher James

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.

Suggested Citation

  • DAY, Christopher James, 2022. "Why industrial location matters in a low-carbon economy," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 283-292.
    • Handle: RePEc:eee:streco:v:63:y:2022:i:c:p:283-292
    DOI: 10.1016/j.strueco.2022.10.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0954349X22001448
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.strueco.2022.10.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. ., 2020. "Innovation as science applied," Chapters, in: The Idea of Technological Innovation, chapter 2, pages 28-35, Edward Elgar Publishing.
    2. Day, Christopher James, 2022. "Continental Drift: Is the Euro’s Fixed Exchange Rate Regime Undermining Cohesion Policy?," European Review, Cambridge University Press, vol. 30(2), pages 219-243, April.
    3. Hillemann, Jenny & Gestrin, Michael, 2016. "The limits of firm-level globalization: Revisiting the FSA/CSA matrix," International Business Review, Elsevier, vol. 25(3), pages 767-775.
    4. Edward L. Glaeser & Janet E. Kohlhase, 2004. "Cities, regions and the decline of transport costs," Advances in Spatial Science, in: Raymond J. G. M. Florax & David A. Plane (ed.), Fifty Years of Regional Science, pages 197-228, Springer.
    5. Hoyt Bleakley & Jeffrey Lin, 2012. "Portage and Path Dependence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(2), pages 587-644.
    6. Ylva Sjöberg & Matthias B. Siewert & Ashley C.A. Rudy & Michel Paquette & Frédéric Bouchard & Julie Malenfant‐Lepage & Michael Fritz, 2020. "Hot trends and impact in permafrost science," Permafrost and Periglacial Processes, John Wiley & Sons, vol. 31(4), pages 461-471, October.
    7. Edward L. Glaeser, 2010. "Introduction to "Agglomeration Economics"," NBER Chapters, in: Agglomeration Economics, pages 1-14, National Bureau of Economic Research, Inc.
    8. Ram Mudambi, 2018. "Knowledge-intensive intangibles, spatial transaction costs, and the rise of populism," Journal of International Business Policy, Palgrave Macmillan, vol. 1(1), pages 44-52, June.
    9. ., 2020. "Tensions and struggles in Europe-level science," Chapters, in: Science Evaluation and Status Creation, chapter 3, pages 32-50, Edward Elgar Publishing.
    10. Edward L. Glaeser, 2010. "Agglomeration Economics," NBER Books, National Bureau of Economic Research, Inc, number glae08-1, October.
    11. McWilliam, Sarah E. & Kim, Jung Kwan & Mudambi, Ram & Nielsen, Bo Bernhard, 2020. "Global value chain governance: Intersections with international business," Journal of World Business, Elsevier, vol. 55(4).
    12. Yoed N. Kenett & Nicole M. Beckage & Cynthia S. Q. Siew & Dirk U. Wulff, 2020. "Cognitive Network Science: A New Frontier," Complexity, Hindawi, vol. 2020, pages 1-4, April.
    13. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    14. Thomas,Michael Stephen Charles & Knowland, Victoria C. P. & Rogers, Cathy, 2020. "The Science of Adult Literacy," Policy Research Working Paper Series 145579, The World Bank.
    15. Nicholas Crafts & Anthony Venables, 2003. "Globalization in History.A Geographical Perspective," NBER Chapters, in: Globalization in Historical Perspective, pages 323-370, National Bureau of Economic Research, Inc.
    16. James M. Cypher & James L. Dietz, 1998. "Static and Dynamic Comparative Advantage: A Multi-Period Analysis with Declining Terms of Trade," Journal of Economic Issues, Taylor & Francis Journals, vol. 32(2), pages 305-314, June.
    17. Vanessa N. L. Wong & Justine D. Shaw, 2020. "Build diversity among science prize winners," Nature, Nature, vol. 580(7802), pages 185-185, April.
    18. Christof Weinhardt & Simon Kloker & Oliver Hinz & Wil M. P. Aalst, 2020. "Citizen Science in Information Systems Research," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 62(4), pages 273-277, August.
    19. ., 2020. "The makings of an authority in science," Chapters, in: Science Evaluation and Status Creation, chapter 1, pages 2-16, Edward Elgar Publishing.
    20. Diletta Pegoraro & Lisa Propris & Agnieszka Chidlow, 2022. "Regional factors enabling manufacturing reshoring strategies: A case study perspective," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 112-133, March.
    21. Ambos, Björn & Brandl, Kristin & Perri, Alessandra & Scalera, Vittoria G. & Van Assche, Ari, 2021. "The nature of innovation in global value chains," Journal of World Business, Elsevier, vol. 56(4).
    22. ., 2020. "Constructing a status intermediary in science," Chapters, in: Science Evaluation and Status Creation, chapter 6, pages 118-134, Edward Elgar Publishing.
    23. Srikanth Bashetty & Selahattin Ozcelik, 2021. "Review on Dynamics of Offshore Floating Wind Turbine Platforms," Energies, MDPI, vol. 14(19), pages 1-30, September.
    24. David S Jacks & Krishna Pendakur, 2010. "Global Trade and the Maritime Transport Revolution," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 745-755, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pan, Xiongfeng & Wang, Mengyang & Li, Mengna, 2023. "Low-carbon policy and industrial structure upgrading: Based on the perspective of strategic interaction among local governments," Energy Policy, Elsevier, vol. 183(C).
    2. Małgorzata Sztorc, 2025. "The Behavior of European Union Companies in Terms of Increasing Energy Efficiency from the Perspective of Achieving Climate Neutrality," Energies, MDPI, vol. 18(3), pages 1-40, January.
    3. Jianxian Wu & Xin Nie & Han Wang, 2024. "Does industrial sustainable development policy act as a booster for urban economic growth? Evidence from China's eco‐industrial parks," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(6), pages 6539-6554, December.
    4. Sun, Weiqing & Shao, Mingqi & Yang, Dongqing, 2024. "Role of essential minerals in achieving low-carbon economy and sustainability," Resources Policy, Elsevier, vol. 90(C).
    5. Liu, Wen & Xu, Jiaqi & Cao, Lei & Li, Fuchang, 2024. "Towards iron ore mining sustainability and low-carbon transformation: Policies and implications," Resources Policy, Elsevier, vol. 90(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ostry, Jonathan D. & Deb, Pragyan & Furceri, Davide & Tawk, Nour, 2020. "The Effect of Containment Measures on the COVID-19 Pandemic," CEPR Discussion Papers 15086, C.E.P.R. Discussion Papers.
    2. Atif Ansar & Bent Flyvbjerg & Alexander Budzier & Daniel Lunn, 2016. "Does infrastructure investment lead to economic growth or economic fragility? Evidence from China," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 32(3), pages 360-390.
    3. Michaels, Guy & Rauch, Ferdinand, 2013. "Resetting the Urban Network: 117-2012," CEPR Discussion Papers 9760, C.E.P.R. Discussion Papers.
    4. Redding, Stephen J. & Turner, Matthew A., 2015. "Transportation Costs and the Spatial Organization of Economic Activity," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1339-1398, Elsevier.
    5. Hanlon, W.Walker & Heblich, Stephan, 2022. "History and urban economics," Regional Science and Urban Economics, Elsevier, vol. 94(C).
    6. Meixing Dai & Nicolas Mazuy, 2017. "La faisabilité et les périls du financement du revenu universel," Bulletin de l'Observatoire des politiques économiques en Europe, Observatoire des Politiques Économiques en Europe (OPEE), vol. 36(1), pages 3-8, June.
    7. Xie, Xiaoyu & Yan, Jun, 2024. "How does artificial intelligence affect productivity and agglomeration? Evidence from China's listed enterprise data," International Review of Economics & Finance, Elsevier, vol. 94(C).
    8. Stephan Heblich & Stephen J Redding & Daniel M Sturm, 2020. "The Making of the Modern Metropolis: Evidence from London," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(4), pages 2059-2133.
    9. Irene Alfarone & Ugo Merlone, 2024. "Should I stay or should I go: A dynamical model of musicians’ agglomeration and migration," Quality & Quantity: International Journal of Methodology, Springer, vol. 58(1), pages 97-116, February.
    10. Miren Lafourcade & Jacques-François Thisse, 2011. "New Economic Geography: The Role of Transport Costs," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 4, Edward Elgar Publishing.
    11. T. Gries & R. Grundmann & I. Palnau & M. Redlin, 2017. "Innovations, growth and participation in advanced economies - a review of major concepts and findings," International Economics and Economic Policy, Springer, vol. 14(2), pages 293-351, April.
    12. Tobias Schlegel & Curdin Pfister & Dietmar Harhoff & Uschi Backes-Gellner, 2022. "Innovation effects of universities of applied sciences: an assessment of regional heterogeneity," The Journal of Technology Transfer, Springer, vol. 47(1), pages 63-118, February.
    13. Lenaerts, Bert & Allroggen, Florian & Malina, Robert, 2021. "The economic impact of aviation: A review on the role of market access," Journal of Air Transport Management, Elsevier, vol. 91(C).
    14. Jan David Bakker & Christopher Parsons & Ferdinand Rauch, 2020. "Migration and Urbanization in Post-Apartheid South Africa," The World Bank Economic Review, World Bank, vol. 34(2), pages 509-532.
    15. Christian Fons-Rosen & Vincenzo Scrutinio & Katalin Szemeredi, 2016. "Colocation and knowledge diffusion: evidence from million dollar plants," CEP Discussion Papers dp1447, Centre for Economic Performance, LSE.
    16. David Cuberes & Rafael González-Val, 2017. "The effect of the Spanish Reconquest on Iberian cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(3), pages 375-416, May.
    17. Partha Mukhopadhyay & Marie‐Hélène Zérah & Eric Denis, 2020. "Subaltern Urbanization: Indian Insights for Urban Theory," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 44(4), pages 582-598, July.
    18. Richard Bluhm & Christian Lessmann & Paul Schaudt, 2021. "The Political Geography of Cities," SoDa Laboratories Working Paper Series 2021-11, Monash University, SoDa Laboratories.
    19. repec:ces:ifodic:v:12:y:2014:i:1:p:19108852 is not listed on IDEAS
    20. Alex W. Chernoff, 2021. "Firm heterogeneity, technology adoption and the spatial distribution of population: Theory and measurement," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(2), pages 475-521, May.
    21. Tabuchi, Takatoshi & Thisse, Jacques-François, 2011. "A new economic geography model of central places," Journal of Urban Economics, Elsevier, vol. 69(2), pages 240-252, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:streco:v:63:y:2022:i:c:p:283-292. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/525148 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.