Macroeconomic barriers to energy transition in peripheral countries: The case of Argentina

Abstract

In the context of the global energy transition, peripheral economies face multipleobstacles in expanding the participation of renewable energy. This article analyzes theprogram for the incorporation of renewable energy in Argentina (RenovAr) that was inforce between 2016 and 2019, and pays particular attention to the weaknesses in itsdesign that explain why, despite the initial momentum, it went into crisis three yearsafter it was launched. This paper corroborates that the country´s macroeconomicinstability became a barrier for an energy transition program that depends on externalfinancing for the import of renewable technologies. In this context, the high exposure tothe ups and downs of the international economy, added to the economic vulnerabilityof peripheral countries such as Argentina, draws attention to the limits of marketmechanisms to organize the public policies necessary to sustain strategies towardsustainable societies over time.