Low-Carbon Competitiveness in Asia

Sugandha Srivastav,Sam Fankhauser,Alex Kazaglis

doi:10.3390/economies6010005

Abstract

Environmental degradation and the risks from climate change have strengthened the need for cleaner forms of economic growth. Using patent, trade and output data, we measure the current size of Asia’s low-carbon economy and assess its competitiveness across key sectors. We look at three success factors for low-carbon competitiveness at the sector level: the ability to convert to low-carbon products and processes (measured by a specialization in low-carbon innovation), the ability to gain and maintain market share (measured by existing comparative advantages) and a favorable starting point (measured by current output and scale). Using this framework, we identify the ‘climate change mitigation technologies’ that Asian countries specialize in and can potentially scale up. The analysis shows that Asia’s top low-carbon economies are Japan, South Korea and China. The sectors in which Asia is particularly well placed to be globally competitive include efficient lighting, photovoltaics and energy storage. Overall, Asia is a specialist in innovating and exporting climate change mitigation technologies but there are significant regional disparities.

Highlights

Environmental degradation and the impacts of climate change are compelling countries around the world to switch to cleaner forms of growth
The results show that Asia is competitive in the global low-carbon economy
The second step in the methodology is to create a competitiveness metric for low-carbon innovation to check whether Asia can accrue value from the design of climate change mitigation technologies’ (CCMTs)

Summary

Introduction

Environmental degradation and the impacts of climate change are compelling countries around the world to switch to cleaner forms of growth. The old model of growth, which relied on carbon-intensive assets, is unlikely to succeed in today’s world, where environmental costs are rising and the negative health effects of pollution are palpable (New Climate Economy 2014). The transition to low-carbon growth will not be automatic. The transition holds the promise of ‘better growth’, that is, growth which is cleaner, sustainable and welfare-maximizing (New Climate Economy 2014).

Methods

Results

Conclusion