Monday, February 22, 2021

China's Investments in Renewable Energy in Africa

 The most recent issue of World Development contains an open access study titled "China's Investments in Renewable Energy in Africa: Creating Co-benefits or Just Cashing In?" by Rasmus Lema, Padmasai Lakshmi Bhamidipati, Cecilia Gregersen, Ulrich Elmer Hansen, and Julian Kirchherr.  

The purpose of the study is to determine to what extent economic co-benefits are created when renewable-energy projects are developed by Chinese investors in Africa.  The authors identify some newly created jobs, linkages generated with actors in local systems of production and training activities involving local staff, but the extent of these benefits is very limited.  Overall, the results suggest that policymakers should be wary of overly optimistic expectations when it comes to assessing the co-benefits of renewable energy projects in the context of scarce pre-existing capabilities.