Why industrial location matters again in a low-carbon economy

Abstract

Reductions in freight transportation costs have favoured agglomeration and radically decreased the requirement for production activities to take place adjacent to natural resources. As the world transitions towards energy generated from renewable sources, this is likely to change. The cost of transporting renewable energy is relatively high and creates a significant competitive advantage for regions with surplus clean energy resources. This paper argues that future models of industrial location must incorporate this dynamic.