Feito no Brasil? Made in South Africa? Boosting technological development through local content requirements in the wind energy industry

dc.contributor.authorRennkamp, Britta
dc.contributor.authorWestin, Fernanda Fortes
dc.date.accessioned2016-02-08T08:25:59Z
dc.date.available2016-02-08T08:25:59Z
dc.date.issued2013
dc.date.updated2016-02-04T08:21:59Z
dc.description.abstractHow can local content requirements (LCR) boost technological capability for renewable energy? This paper investigates the implementation of LCR in the wind energy in Brazil and South Africa. Brazil tried to grow a local wind industry requiring 60% domestic content in each installation since 2004. South Africa demands up to 45% domestic content in its recent program. The benefits of these requirements are heavily debated. The rationale behind LCR is that governments in developing countries intend to stimulate jobs in new industries and to accelerate technological development. This market intervention imposes a barrier for international manufacturers, as local manufacturing can push up the technology prices. Based on evidence from Brazil and South Africa, we find that LCR fall short as a single technology policy instrument. The Brazilian case shows that LCR incentivized the domestic production of low and medium technology content. These are the heavy parts, such as the towers, which are difficult to transport. Recently, parts of the nacelle, hubs and blades have increasingly been manufactured locally. High technology-intensive components, however, continue to be imported. Boosting local industries requires not just restrictive measure such as content requirements but, more importantly, it requires active support of technological capability.en_ZA
dc.identifier.apacitationRennkamp, B., & Westin, F. F. (2013). Feito no Brasil? Made in South Africa? Boosting technological development through local content requirements in the wind energy industry. <i>Energy Research Centre</i>, http://hdl.handle.net/11427/16875en_ZA
dc.identifier.chicagocitationRennkamp, Britta, and Fernanda Fortes Westin "Feito no Brasil? Made in South Africa? Boosting technological development through local content requirements in the wind energy industry." <i>Energy Research Centre</i> (2013) http://hdl.handle.net/11427/16875en_ZA
dc.identifier.citationRennkamp, B., & Westin, F. (2013). Feito no Brasil? Made in South Africa? Boosting technological development through local content policies in the wind energy industry. Energy Research Centre, University of Cape Town, Cape Town, South Africa.en_ZA
dc.identifier.ris TY - Journal Article AU - Rennkamp, Britta AU - Westin, Fernanda Fortes AB - How can local content requirements (LCR) boost technological capability for renewable energy? This paper investigates the implementation of LCR in the wind energy in Brazil and South Africa. Brazil tried to grow a local wind industry requiring 60% domestic content in each installation since 2004. South Africa demands up to 45% domestic content in its recent program. The benefits of these requirements are heavily debated. The rationale behind LCR is that governments in developing countries intend to stimulate jobs in new industries and to accelerate technological development. This market intervention imposes a barrier for international manufacturers, as local manufacturing can push up the technology prices. Based on evidence from Brazil and South Africa, we find that LCR fall short as a single technology policy instrument. The Brazilian case shows that LCR incentivized the domestic production of low and medium technology content. These are the heavy parts, such as the towers, which are difficult to transport. Recently, parts of the nacelle, hubs and blades have increasingly been manufactured locally. High technology-intensive components, however, continue to be imported. Boosting local industries requires not just restrictive measure such as content requirements but, more importantly, it requires active support of technological capability. DA - 2013 DB - OpenUCT DP - University of Cape Town J1 - Energy Research Centre LK - https://open.uct.ac.za PB - University of Cape Town PY - 2013 T1 - Feito no Brasil? Made in South Africa? Boosting technological development through local content requirements in the wind energy industry TI - Feito no Brasil? Made in South Africa? Boosting technological development through local content requirements in the wind energy industry UR - http://hdl.handle.net/11427/16875 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/16875
dc.identifier.vancouvercitationRennkamp B, Westin FF. Feito no Brasil? Made in South Africa? Boosting technological development through local content requirements in the wind energy industry. Energy Research Centre. 2013; http://hdl.handle.net/11427/16875.en_ZA
dc.languageengen_ZA
dc.publisherEnergy Research Centre, University of Cape Town.en_ZA
dc.publisher.departmentEnergy Research Centreen_ZA
dc.publisher.facultyFaculty of Engineering and the Built Environment
dc.publisher.institutionUniversity of Cape Town
dc.rightsCreative Commons Attribution 4.0 International (CC BY 4.0)*
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/en_ZA
dc.sourceEnergy Research Centreen_ZA
dc.subject.otherRenewable energy sources
dc.subject.otherWind power
dc.subject.otherSustainable development
dc.subject.otherEnergy policy
dc.titleFeito no Brasil? Made in South Africa? Boosting technological development through local content requirements in the wind energy industryen_ZA
dc.typeJournal Articleen_ZA
uct.subject.keywordstechnological developmenten_ZA
uct.subject.keywordswind energyen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceArticleen_ZA
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