China and the change of the energy matrix in Latin America: a global political economy approach

Abstract

China is leading the global change in the energy matrix and mainly Latin America.
This change questions the position and leadership of the United States in general and
particularly in Latin America. Evidence shows that the United States lags in energy change
in technical and institutional terms and is anchored heavily in dirty energy. Evidence also
indicates that the US is not allowing China to advance in the region quickly. Power generation
from renewable energy sources is rising, with China leading in solar equipment and
hydroelectric dams while buying out electric distribution networks from US firms. The consequences
for the global economy will be felt on many fronts, from the balance of trade sign change and decreased inflation to currency realignments and power reshuffle as oil prices
collapse.

JEL Classification: F6; O1; F18; F5; O36; O38.