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Wind and Solar Power in Brazil and China: Interests, State–Business Relations, and Policy Outcomes

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  • Kathryn Hochstetler
  • Genia Kostka

Abstract

This article examines developments in the renewable electricity sector in Brazil and China since 2000. The two countries share many interests with respect to solar and wind power, but institutional differences in state–business relations led to different outcomes. In China, in a context of corporatist state–business relations, state interventions were more far-reaching, with the state coordinating with state-owned banks, offering large financial and investment incentives to state-owned or state-connected enterprises. By contrast, in Brazil’s public–private partnerships, state support to promote renewable energies was shaped by a stronger preference for competitive auctions and stricter financing rules. The differences in state–business relations help explain the observed developmental trajectories in wind and solar power.

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  • Kathryn Hochstetler & Genia Kostka, 2015. "Wind and Solar Power in Brazil and China: Interests, State–Business Relations, and Policy Outcomes," Global Environmental Politics, MIT Press, vol. 15(3), pages 74-94, August.
    • Handle: RePEc:tpr:glenvp:v:15:y:2015:i:3:p:74-94
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    Cited by:

    1. Hansen, U.E. & Nygaard, I. & Morris, M. & Robbins, G., 2020. "The effects of local content requirements in auction schemes for renewable energy in developing countries: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 127(C).
    2. Bradshaw, Amanda, 2017. "Regulatory change and innovation in Latin America: The case of renewable energy in Brazil," Utilities Policy, Elsevier, vol. 49(C), pages 156-164.
    3. Karolina Daszyńska-Żygadło & Krzysztof Jajuga & Justyna Zabawa, 2021. "Bank as a Stakeholder in the Financing of Renewable Energy Sources. Recommendations and Policy Implications for Poland," Energies, MDPI, vol. 14(19), pages 1-22, October.
    4. Timothy Fraser & Lily Cunningham & Amos Nasongo, 2021. "Build Back Better? Effects of Crisis on Climate Change Adaptation Through Solar Power in Japan and the United States," Global Environmental Politics, MIT Press, vol. 21(1), pages 54-75, Winter.
    5. de Paulo, Alex Fabianne & Nunes, Breno & Porto, Geciane, 2020. "Emerging green technologies for vehicle propulsion systems," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    6. Kejia Yang & Kaidong Feng, 2024. "Going beyond catch up: two governance models of China’s low-carbon energy transitions," Working Papers on Innovation Studies 20240108, Centre for Technology, Innovation and Culture, University of Oslo.
    7. Song, Feng & Yu, Zichao & Zhuang, Weiting & Lu, Ao, 2021. "The institutional logic of wind energy integration: What can China learn from the United States to reduce wind curtailment?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    8. Behuria, Pritish, 2020. "The politics of late late development in renewable energy sectors: Dependency and contradictory tensions in India’s National Solar Mission," World Development, Elsevier, vol. 126(C).
    9. Binbin Yang & Sang-Do Park, 2023. "Who Drives Carbon Neutrality in China? Text Mining and Network Analysis," Sustainability, MDPI, vol. 15(6), pages 1-24, March.
    10. Miguel Vazquez & Michelle Hallack & Gustavo Andreão & Alberto Tomelin & Felipe Botelho & Yannick Perez & Matteo Di Castelnuovo, 2018. "Bi-regional economic perspectives Financing the transition to renewable energy in the European Union, Latin America and the Caribbean," Post-Print hal-04297629, HAL.
    11. Kayser, Dirk, 2016. "Solar photovoltaic projects in China: High investment risks and the need for institutional response," Applied Energy, Elsevier, vol. 174(C), pages 144-152.
    12. Bernardo Alves Furtado & Gustavo Onofre Andre~ao, 2022. "Machine Learning Simulates Agent-Based Model Towards Policy," Papers 2203.02576, arXiv.org, revised Nov 2022.

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    More about this item

    Keywords

    Renewable energy; solar power; wind power; comparative economics; China; Brazil;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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