Perincek, Rüya; (2019) Resource-based growth and eco-innovation in mining countries: The case of Australia and Chile. Doctoral thesis (Ph.D), UCL (University College London).

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Abstract

In view of the collective effort to tackle climate change and achieve sustainable development worldwide, this dissertation addresses the question of what the emerging eco-innovation trends in resource-rich economies are and what drives them. It addresses this novel question by developing an analytical framework around rational choice institutionalism and the cases of Australia and Chile. Doing so the research follows the questions of (i) why Australia performs worse in reforming its policies and institutions in support of eco-innovation than Chile despite similar challenges and potentials and (ii) why mining companies, operating in both countries and facing similar environmental risks, follow different investment strategies in Chile than in Australia and (iii) to what extent international agreements and organisations, the domestic policy and institutional frameworks, the structure of collaboration between public institutions and the private sector, and finally, domestic veto players resistant to regime change play a role. The research finds that global climate change and trade and cooperation agreements have unfolded eco-innovation effects in terms of policy and practice in Chile, aligning international agreements with domestic goals of addressing energy security challenges and capitalising on its renewable energy potential to its economic advantage by facilitating access to finance and mobilising foreign investment, while the Australian case shows a high degree of lack of continuity and political will to transform its policies due to prevailing domestic vested interests pulling in one direction, hindering at the same time justified interests to cope with climate change impacts and develop innovations. Unlike Australia, Chile has effective horizontal coordination in place and an inclusive process has led to nation-wide renewable energy targets with bipartisan support. Such combination of foresight and horizontal coordination has been leading to continuity and certainty despite change in government. Australia, on the other hand, suffers from the “challenge of multi-jurisdiction cooperation”, which is particularly evident in the field of energy policy. The Australian case also shows that despite incumbents showing resistance for regime change can be overcome to some extent through an effective cooperation between public institutions and the private sector, aligning their preferences around common goals of reducing costs and enhancing competitiveness. Similarly, access to finance and administrative support, facilitated by the Chilean government, to address economic risks and costs have unfolded a positive and encouraging effect on eco- innovation. The research design is based on mixed methods, including a coding scheme, for which this work benefitted from using NVivo, a data analysis software. In the context of eco-innovation in mining countries, this methodological approach is novel and provides useful insights on the two countries and mining sector’s perception of sustainability, priorities and responses.

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