Talks@Bruegel: China’s green transition with Wensheng Peng

A crucial, but often overlooked factor for green transition is the economies of scale on the supply side, which are particularly relevant to three characteristics of the clean energy industry. Firstly, its manufacturing nature, which inherently benefits from economies of scale; secondly, its digital components, which amplify the scale effects of manufacturing, and thirdly, its demand for land (space), which can lead to diseconomies of scale—an issue that could be mitigated more effectively in spatially large countries. Another underappreciated aspect is a rise in competition associated with the shift from fossil fuel (natural resources) to green energy (manufactured goods). While competition increases efficiency of the global economy, it may also change the production and trade structure, inviting frictions and protectionism.

At this event, we welcomed Dr. Wensheng Peng, the Chief Economist and Head of Research at the China International Capital Corporation Limited (CICC), and Dean of the CICC Global Institute, who shared his views on how scale and competition propel China's green transition and what role China can play to foster a more conducive environment for the global green transition.