Seminar in International Economics: Can strategic dependencies harm the acceleration towards net-zero transition? The case of the lithium-ion battery industry

Join Dario Guarascio as he examines the interplay between technological capabilities, import dependency, and environmental policies in the lithium-ion battery supply chain, showing how smart policy design can overcome trade-offs and support both strategic autonomy and the net-zero transition.

The Competence Centre for International Economics Research (FIW) kindly invites to participate in the Seminar in International Economics on the topic

Can strategic dependencies harm the acceleration towards net-zero transition? The case of the lithium-ion battery industry

This paper investigates the relationship between technological capabilities, import dependency, and environmental policies, focusing on the lithium-ion battery supply chain (LBSC) a critical sector for the net-zero transition. We contribute to the growing literature on the drivers and barriers to accelerating the transition in the following ways. First, we develop an original analytical framework that integrates two recent streams of literature: one focusing on the acceleration of the green transition and the other one structural dependencies and technological sovereignty to examine potential trade-offs between these objectives. Second, we develop a strategic intelligence analysis of the LBSC allowing to quantify import dependencies and technological capacity gaps at a highly granular product/technology level. This allows to identify critical products and supply chain stages where policy action is needed to avoid the emergence of bottlenecks to the green transition. Third, we examine how technological capabilities influence import dependency, showing under what conditions technological upgrading strengthens competitive positions and mitigates dependency. Finally, we analyse how environmental policy stringency relates to import dependency, assessing whether and in which circumstances environmental goals may conflict with technological sovereignty and strategic autonomy ones. Our findings suggest that technological upgrading can reduce dependencies without compromising environmental goals so that the presumed trade-off between the net-zero transition and structural dependencies does not necessarily hold. In contrast, a well designed policy mix, aligning environmental objectives with targeted innovation and industrial policies, can enhance both resilience and the acceleration towards the net-zero transition.

Registration:

Please note that this event is a hybrid event.
For participation onsite – please register here.
For participation online via Zoom – please register here.

Language: English

Speaker: Dario Guarascio is Associate Professor of Economic Policy at the Department of Economics and Law – Sapienza University of Rome – and external affiliate of the Sant’Anna School of Advanced Studies in Pisa, of the National Institute for Public Policy Analysis (INAPP) and of the Nexa Center for Internet & Society (Polytechnic University of Turin). Dario Guarascio’s research covers economics of innovation, digitalization and labor markets, European economy and industrial policy.

This event is co-organised with the Research Centre International Economics (FIW).  The seminar provides a forum for presentation and discussion of recent academic research in the field of international economics.

The event will be recorded.