Argentina’s green export potential: an analysis of the green production space

Authors

  • Gabriel Palazzo Instituto Interdisciplinario de Economía Política (IIEP-Baires) y Centro de Estudios de Estado y Sociedad (CEDES)
  • Marcos Feole Fundación para el desarrollo de Argentina (FUNDAR)
  • Matías Gutman Fundación para el desarrollo de Argentina (FUNDAR)
  • Sabina Bercovich Universidad Autónoma de Barcelona (UAB), Centro de Estudios Demográficos (CED)

DOI:

https://doi.org/10.59339/de.v63i241.649

Keywords:

Sustainable Development, Green Exports, Climate Change, Argentina

Abstract

Is it possible to harmonize a green export development strategy with the acceleration of economic growth in Argentina, and towards which sectors should public policy efforts be directed in order to achieve this? To answer these questions, this article constructs the “Green” product-space at 6 digits of disaggregation of the harmonized system of international trade and analyzes the economic complexity associated with each of its products, as well as its connections with the already competitive sectors of the country. In this way, the economic benefits associated with products that directly provide environmental services or are key to activities that reduce gas emissions can be weighed. The main results are summarized as follows: i) green products, in general, are complex products and their development would accelerate the economic growth of the countries; ii) however, the green products closest to the current productive capacities of Argentina are of low complexity and with low contribution to economic growth; iii) these results would justify the exploration of costs and benefits of carrying out productive policies that maximize the complexity of the green export basket to be developed and minimize the productive effort to achieve it. To this end, different selection criteria are proposed, which result in 30 products that could be the starting point for a green export development strategy for a given country.

Downloads

Download data is not yet available.

References

Acemoglu, D., Aghion, P., Bursztyn, L., & Hemous, D. (2009). The Environment and Directed Technical Change. doi:https://doi.org/10.3386/w15451

Aghion, P., Hemous, D., & Veugelers, R. (2009). No Green Growth without Innovation. Bruegel Policy Brief - 2009/07. Recuperado de https://lirias.kuleuven.be/retrieve/114088

Aghion, P., Hepburn, C., Teytelboym, A., & Zenghelis, D. (2019). Path Dependence, Innovation and the Economics of Climate Change. Handbook on Green Growth. doi:https://doi.org/10.4337/9781788110686.00011

Balassa, B. (1965). Trade liberalisation and “revealed” comparative advantage. The Manchester school, 33(2), 99-123. doi:https://doi.org/10.1111/j.1467-9957.1965.tb00050.x

Belmartino, A. (2022). Green & non-green relatedness: challenges and diversification opportunities for regional economies in Argentina. Recuperado de https://ideas.repec.org/p/nmp/nuland/3697.html

Brest López, C., García Díaz, F., & Rapetti, M. (2019). El desafío exportador de Argentina. Recuperado de https://www.cippec.org/publicacion/el-desafio-exportador-de-argentina/

Bril Mascarenhas, T., Freytes, C., O’Farrell, J., & Palazzo, G. (2020a). Qué es el desarrollo y cómo pensarlo. Documento de trabajo N°1. Fundación para el Desarrollo Argentino (Fundar). Recuperado de https://www.fund.ar/publicaciones/

Bril Mascarenhas, T., Gutman, V., Dias Lourenco, M. B., Pezzarini, L., Palazzo, G., & Anauati, M. V. (2021). Políticas de desarrollo productivo verde para la Argentina. Buenos Aires: Fundar.

Cantore, N., & Cheng, C. (2018). International trade of environmental goods in gravity models. Journal of environmental management, (223), 1047-1060. doi:https://doi.org/10.1016/j.jenvman.2018.05.036

Felipe, J., Kumar, U., Abdon, A., & Bacate, M. (2012). Product complexity and economic development. Structural Change and Economic Dynamics, 23(1), 36–68. doi:https://doi.org/10.1016/j.strueco.2011.08.003

Fraccascia, L., Giannoccaro, I., & Albino, V. (2018). Green product development: What does the country product space imply? Journal of Cleaner Production, 170 (January), 1076–88. doi:https://doi.org/10.1016/j.jclepro.2017.09.190

Hallegatte, S., Heal, G., Fay, M., & Treguer, D. (2012). From Growth to Green Growth - a Framework. National Bureau of Economic Research. doi:https://doi.org/10.3386/w17841

Hamwey, R., Pacini, H., & Assunção, L. (2013). Mapping Green Product Spaces of Nations. Journal of Environment & Development, 22 (2), 155–168. doi:https://doi.org/10.1177/1070496513482837

Hausmann, R., & Hidalgo, C. A. (2011). The Network Structure of Economic Output. Journal of Economic Growth, 16 (4), 309–342. Recuperado de http://www.tinyurl.com/y4yeros7

Hausmann, R., Hidalgo, C. A., Bustos, S., Coscia, M., & Simoes, A. (2014). The Atlas of Economic Complexity: Mapping Paths to Prosperity. MIT Press, 482–487. Recuperado de https://growthlab.cid.harvard.edu/atlas-economic-complexity

Hickel, J., & Kallis, G. (2020). Is Green Growth Possible? New Political Economy, 25 (4), 469–86. doi:https://doi.org/10.1080/13563467.2019.1598964

Hidalgo, C. A., & Hausmann, R. (2009). The Building Blocks of Economic Complexity. Proceedings of the National Academy of Sciences of the United States of America, 106 (26): 10570–10575. doi:https://doi.org/10.1073/pnas.0900943106

Hidalgo, C. A., Klinger, B., Barabási, A.-L., & Hausmann, R. (2007). The Product Space Conditions the Development of Nations. Science. doi:https://doi.org/10.1126/science.1144581

Howse, R., & Van Bork, P. B. (2006). Options for Liberalising Trade in Environmental Goods in the Doha Round. Geneva: International Centre for Trade and Sustainable Development. Recuperado de https://www.researchgate.net/publication/239808917_Options_for_Liberalising_Trade_in_Environmental_Goods_in_the_Doha_Round

Kallis, G. (2011). In Defence of Degrowth. Ecological Economics: The Journal of the International Society for Ecological Economics, 70(5), 873–880. doi:https://doi.org/10.1016/j.ecolecon.2010.12.007

Kallis, G., Kerschner, C., & Martinez-Alier, J. (2012). The Economics of Degrowth. Ecological Economics: The Journal of the International Society for Ecological Economics, 84 (December), 172–180. doi:https://doi.org/10.1016/j.ecolecon.2012.08.017

Marín, A., & Goya, D. (2021). Mining - The dark side of the energy transition. Environmental Innovation and Societal Transitions, 41, 86-88. doi:https://doi.org/10.1016/j.eist.2021.09.011

Mealy, P., & Teytelboym, A. (2020). Economic Complexity and the Green Economy. Research Policy, April, 103948. doi:http://dx.doi.org/10.2139/ssrn.3111644

OECD. (2009). OECD 2009 Ministerial Meeting Conclusions. Organisation for Economic Cooperation and Development. The OECD Observer; Paris. Paris, France, Paris: Organisation for Economic Bibliografía

Acemoglu, D., Aghion, P., Bursztyn, L., & Hemous, D. (2009). The Environment and Directed Technical Change. doi:https://doi.org/10.3386/w15451

Aghion, P., Hemous, D., & Veugelers, R. (2009). No Green Growth without Innovation. Bruegel Policy Brief - 2009/07. Recuperado de https://lirias.kuleuven.be/retrieve/114088

Aghion, P., Hepburn, C., Teytelboym, A., & Zenghelis, D. (2019). Path Dependence, Innovation and the Economics of Climate Change. Handbook on Green Growth. doi:https://doi.org/10.4337/9781788110686.00011

Balassa, B. (1965). Trade liberalisation and “revealed” comparative advantage. The Manchester school, 33(2), 99-123. doi:https://doi.org/10.1111/j.1467-9957.1965.tb00050.x

Belmartino, A. (2022). Green & non-green relatedness: challenges and diversification opportunities for regional economies in Argentina. Recuperado de https://ideas.repec.org/p/nmp/nuland/3697.html

Brest López, C., García Díaz, F., & Rapetti, M. (2019). El desafío exportador de Argentina. Recuperado de https://www.cippec.org/publicacion/el-desafio-exportador-de-argentina/

Bril Mascarenhas, T., Freytes, C., O’Farrell, J., & Palazzo, G. (2020a). Qué es el desarrollo y cómo pensarlo. Documento de trabajo N°1. Fundación para el Desarrollo Argentino (Fundar). Recuperado de https://www.fund.ar/publicaciones/

Bril Mascarenhas, T., Gutman, V., Dias Lourenco, M. B., Pezzarini, L., Palazzo, G., & Anauati, M. V. (2021). Políticas de desarrollo productivo verde para la Argentina. Buenos Aires: Fundar.

Cantore, N., & Cheng, C. (2018). International trade of environmental goods in gravity models. Journal of environmental management, (223), 1047-1060. doi:https://doi.org/10.1016/j.jenvman.2018.05.036

Felipe, J., Kumar, U., Abdon, A., & Bacate, M. (2012). Product complexity and economic development. Structural Change and Economic Dynamics, 23(1), 36–68. doi:https://doi.org/10.1016/j.strueco.2011.08.003

Fraccascia, L., Giannoccaro, I., & Albino, V. (2018). Green product development: What does the country product space imply? Journal of Cleaner Production, 170 (January), 1076–88. doi:https://doi.org/10.1016/j.jclepro.2017.09.190

Hallegatte, S., Heal, G., Fay, M., & Treguer, D. (2012). From Growth to Green Growth - a Framework. National Bureau of Economic Research. doi:https://doi.org/10.3386/w17841

Hamwey, R., Pacini, H., & Assunção, L. (2013). Mapping Green Product Spaces of Nations. Journal of Environment & Development, 22 (2), 155–168. doi:https://doi.org/10.1177/1070496513482837

Hausmann, R., & Hidalgo, C. A. (2011). The Network Structure of Economic Output. Journal of Economic Growth, 16 (4), 309–342. Recuperado de http://www.tinyurl.com/y4yeros7

Hausmann, R., Hidalgo, C. A., Bustos, S., Coscia, M., & Simoes, A. (2014). The Atlas of Economic Complexity: Mapping Paths to Prosperity. MIT Press, 482–487. Recuperado de https://growthlab.cid.harvard.edu/atlas-economic-complexity

Hickel, J., & Kallis, G. (2020). Is Green Growth Possible? New Political Economy, 25 (4), 469–86. doi:https://doi.org/10.1080/13563467.2019.1598964

Hidalgo, C. A., & Hausmann, R. (2009). The Building Blocks of Economic Complexity. Proceedings of the National Academy of Sciences of the United States of America, 106 (26): 10570–10575. doi:https://doi.org/10.1073/pnas.0900943106

Hidalgo, C. A., Klinger, B., Barabási, A.-L., & Hausmann, R. (2007). The Product Space Conditions the Development of Nations. Science. doi:https://doi.org/10.1126/science.1144581

Howse, R., & Van Bork, P. B. (2006). Options for Liberalising Trade in Environmental Goods in the Doha Round. Geneva: International Centre for Trade and Sustainable Development. Recuperado de https://www.researchgate.net/publication/239808917_Options_for_Liberalising_Trade_in_Environmental_Goods_in_the_Doha_Round

Kallis, G. (2011). In Defence of Degrowth. Ecological Economics: The Journal of the International Society for Ecological Economics, 70(5), 873–880. doi:https://doi.org/10.1016/j.ecolecon.2010.12.007

Kallis, G., Kerschner, C., & Martinez-Alier, J. (2012). The Economics of Degrowth. Ecological Economics: The Journal of the International Society for Ecological Economics, 84 (December), 172–180. doi:https://doi.org/10.1016/j.ecolecon.2012.08.017

Marín, A., & Goya, D. (2021). Mining - The dark side of the energy transition. Environmental Innovation and Societal Transitions, 41, 86-88. doi:https://doi.org/10.1016/j.eist.2021.09.011

Mealy, P., & Teytelboym, A. (2020). Economic Complexity and the Green Economy. Research Policy, April, 103948. doi:http://dx.doi.org/10.2139/ssrn.3111644

OECD. (2009). OECD 2009 Ministerial Meeting Conclusions. Organisation for Economic Cooperation and Development. The OECD Observer; Paris. Paris, France, Paris: Organisation for Economic Cooperation and Development (OECD). Recuperado de https://search.proquest.com/openview/4c7ffee93934ab0ac4d1b150f4b06985/1?pq-origsite=gscholar&cbl=35885

OECD (2011). OECD Green Growth Studies Towards Green Growth. OECD Publishing.

Porter, M. E., & Linde, C. V. (1995). Toward a new conception of the environment-competitiveness relationship. Journal of Economic Perspectives, 9(4), 97-118. doi:https://doi.org/10.1787/9789264111318-en

Ramos, M. P. (2018). El comercio de bienes ambientales una evaluación en equilibrio general computado para la argentina a nivel de producto (HS6). Universidad de Buenos Aires. Facultad de Ciencias Económicas. Instituto Interdisciplinario de Economía Política de Buenos Aires; Documentos de Trabajo del IIEP, 33, 11-2018, 1-40. Recuperado de http://iiep-baires.econ.uba.ar/publicacion/478

Ramos, M. P., Chisari, O., & Vila Martínez, J. P. (2017). Scale, Technique and Composition Effects of CO2 Emissions under Trade Liberalization of EGS: A CGE Evaluation for Argentina. World Academy of Science, Engineering and Technology; International Journal of Environmental and Ecological Engineering, 11(7), 7-2017, 1-5. Recuperado de https://waset.org/Publication/scale-technique-and-composition-effects-of-co2-emi

Published

2024-04-26

How to Cite

Palazzo, G., Feole, M., Gutman, M., & Bercovich, S. (2024). Argentina’s green export potential: an analysis of the green production space. Desarrollo Económico. Revista De Ciencias Sociales, 63(241), 252–286. https://doi.org/10.59339/de.v63i241.649

Issue

Section

Papers