Table Of ContentMatheus Koengkan · José Alberto Fuinhas
Globalisation and
Energy Transition in
Latin America and
the Caribbean
Economic Growth and
Policy Implications
Globalisation and Energy Transition in Latin
America and the Caribbean
Matheus Koengkan • José Alberto Fuinhas
Globalisation and
Energy Transition in
Latin America and the
Caribbean
Economic Growth and Policy Implications
Matheus Koengkan José Alberto Fuinhas
Department of Economics, CeBER and Faculty of Economics
Management, Industrial Engineering University of Coimbra
and Tourism (DEGEIT) Coimbra, Portugal
University of Aveiro
Aveiro, Portugal
ISBN 978-3-031-13884-3 ISBN 978-3-031-13885-0 (eBook)
https://doi.org/10.1007/978-3-031-13885-0
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C
ontents
1 Introduction 1
2 Renewable Energy Transition and Globalisation in the
Latin American and Caribbean Region: A Five-Decade
Picture 7
3 Does Financial Openness Expand the Renewable Energy
Investment in Latin American Countries? 27
4 The Interactions Between Renewable Energy
Consumption, Economic Growth, and Globalisation:
Fresh Evidence from the Mercosur Countries 63
5 The Energy-Economic Growth Nexus in Latin American
and Caribbean Countries: A New Approach with the
Globalisation Index 101
6 Impact of Trade Openness on the Consumption of Fossil
Fuels in Latin American and Caribbean Countries 137
v
vi CoNTENTS
7 The Role of the Globalisation Process in Mitigating
Carbon Dioxide Emissions in Latin American and
Caribbean Countries 175
8 Does the Energy Transition Process Decrease the
Environmental Degradation in Latin American and
Caribbean Countries? 199
9 Conclusions 245
Index 253
A A
bout the uthors
Matheus Koengkan holds a PhD in Economics from the University of
Évora. He is an energy and environmental economics researcher at the
Department of Economics, Management, Industrial Engineering and
Tourism (DEGEIT), University of Aveiro, Aveiro, Portugal. He has pub-
lished in international journals, such as Energy; Environmental Economics
and Policy Studies; GeoJournal; Environmental Science and Pollution
Research; and Environment Systems and Decisions.
José Alberto Fuinhas, PhD in Economics, is Professor of Monetary
Economics and Intermediate Econometrics at the Faculty of Economics
of the University of Coimbra, Coimbra, Portugal. In addition, he is a
researcher in macroeconomics, energy economics, and environmental eco-
nomics at the CeBER—Centre for Business and Economics Research—
sponsored by the Portuguese Foundation for the Development of Science
and Technology. He has published in international journals, such as
Energy, Economic Modelling; Energy Policy; Energy Economics; Renewable
and Sustainable Energy Reviews; Applied Energy; Environmental Science
and Policy; Environmental Resources and Economics; and Energy Sources
Part B: Economics, Planning, and Policy.
vii
L f
ist of igures
Fig. 2.1 Evolution of GDP per capita growth (annual %) in Latin
America and the Caribbean (1989–2014). (The authors created
this figure using the World Bank open Data database (2021)) 9
Fig. 2.2 Evolution of GDP per capita (current US$) in Latin America
and the Caribbean (1989–2014). (The authors created this
figure using the World Bank open Data database (2021)) 10
Fig. 2.3 Evolution of electric power consumption (kWh per capita) in
Latin America and the Caribbean (1989–2014). (The authors
created this figure using the World Bank open Data database
(2021)) 11
Fig. 2.4 Evolution of renewable and fossil fuel energy consumption (%
of total energy consumption) in Latin America and the
Caribbean (1989–2014). (The authors created this figure using
the World Bank open Data database (2021)) 11
Fig. 2.5 Energy consumption by source in Central and South America
between 1970 and 2015. Energy consumption is measured in
terawatt-hours (TWh); other renewables include geothermal,
biomass, and waste energy. (The authors created this figure
using our World in Data (2021) database) 13
Fig. 2.6 Evolution of installed renewable energy capacity (million
kilowatts) from biomass, hydropower, solar, photovoltaic, wind,
wave, and waste in Latin America and the Caribbean from 1989
to 2014. (The authors created this figure using the IEA
database (2018)) 14
ix
x LIST oF FIGURES
Fig. 2.7 Evolution of trade (% of GDP) in Latin America and the
Caribbean (1989–2014). (The authors created this figure
using the World Bank open Data database (2021)) 17
Fig. 2.8 Evolution of foreign direct investment (FDI), net inflows per
capita (BoP, current US$) in Latin America and the Caribbean
between 1989 and 2014. (The authors created this figure using
the World Bank open Data database (2021)) 18
Fig. 2.9 Evolution of exports and imports of goods and services per
capita (BoP, current US$) in Latin America and the Caribbean
between 1989 and 2014. (The authors created this figure using
the World Bank open Data database (2021)) 20
Fig. 2.10 Evolution of KoF globalisation index de facto (scale from 1 to
100) in Latin America and the Caribbean between 1989 and
2014. (The authors created this figure with the database from
the KoF globalisation index (2021)) 21
Fig. 3.1 Global trends in renewable energy investment between 2004
and 2018. New investment United States Dollar (USD) billion.
(The authors created this figure with the database from the IEA
(2020)) 28
Fig. 3.2 Summary of causality of the variables. (The authors created this
figure) 46
Fig. 3.1a Impulse—response functions from robustness check 53
Fig. 4.1 Energy consumption by energy source in Central and South
America between 1970 and 2015. Energy consumption is
measured in terawatt-hours (TWh); other renewables include
geothermal, biomass, and waste energy. (The authors created
this figure with the database from our World in Data (2021)) 64
Fig. 4.2 Evolution of GDP per capita growth (annual %) in Latin
America and the Caribbean (1989–2014). (The authors created
this figure with the database from the World Bank open Data
(2021)) 65
Fig. 4.3 Evolution of GDP per capita (current US$) in Latin America
and the Caribbean (1989–2014). (The authors created
this figure with the database from the World Bank open
Data (2021)) 65
Fig. 4.4 Summary of causality of the variables. (The authors created
this figure) 85
Fig. 4.5 Impulse-response functions 87
Fig. 5.1 Evolution of GDP per capita (current US$) in Latin America
and the Caribbean (1989–2014). (The authors created this
figure with the World Bank open Data database (2021)) 102
Fig. 5.2 Granger causality. (Figure created by the authors) 123
LIST oF FIGURES xi
Fig. 6.1 Summary of the variable’s effect. (The authors created
this figure) 159
Fig. 8.1 Evolution of carbon dioxide emissions (Co ) in Kilotons (Kt)
2
per capita in Latin America and the Caribbean (1989–2014).
(The authors created this figure with the database from the
World Bank open Data (2021)) 200
Fig. 8.2 Evolution of KoF globalisation index de facto (scale from 1 to
100) in Latin America and the Caribbean between 1989 and
2014. (The authors created this figure with the database from
the KoF Globalization Index (2021)) 220
Fig. 8.3 Summary of the impact of globalisation on renewable energy
development. (Adapted from Koengkan et al., 2019) 224
Fig. 8.1a Impulse-response functions from complementary robustness
check 233
