preprints.org > business, economics and management > economics > doi: 10.20944/preprints202406.1238.v1

Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Version 1 : Received: 12 June 2024 / Approved: 18 June 2024 / Online: 18 June 2024 (16:57:09 CEST)

Abstract: The conundrum of Latin American countries in the green transition unveils new opportunities and old structural problems. There is a clear advantage in the energy grid for Argentina, Brazil, and Mexico, coming mainly from hydropower, solar, and wind energy. In 2022, Brazil had the largest solar photovoltaic energy generation capacity in Latin America and the Caribbean, with over 24 gigawatts. Mexico ranked second, with some 9 gigawatts, and Chile ranked third, with a capacity of around 6 gigawatts. The window of opportunity for the industrialized Latin American countries resides chiefly in greening the natural resources industries and agriculture and husbandry, mainly for Brazil and Argentina. Latin America faces the dual challenge of promoting renewable energy and upgrading its value chains while managing the socioeconomic dynamics inherent in its developmental stages. It poses an enormous challenge for Latin American countries because of the phenomenon of "time compression" (Whittaker et al., 2020). Developing country's innovation and technology-intensive segments coexist with informal labor and low-skilled workers. Far from disappearing with economic growth, such coexistence becomes reinforced through an increasingly wide array of temporary and insecure jobs. Time compression condenses different stages of industrial and economic development within the same space and time, directly affecting the indicators related to the reduction of environmental impacts. Instead of locking in one path for this transition, Latin American countries had better not cling to panaceas but consider the threats, the risks, and the need to experiment with multiple paths and solutions simultaneously. However, this change implies the formation of a genuine developmental and environmental coalition guided by rigorous strategic considerations not captured by immediate interests.

Green transition, limits of green growth, challenges of green finance, Latin America, sectoral GHG in Latin American countries. 

Business, Economics and Management, Economics

* All users must log in before leaving a comment