Industrial policy imitation: the perils of matching the US Inflation Reduction Act to attract battery plants

Implementation of the US IRA in 2022 significantly changed the practice of automotive-related industrial policy in the USA. The authors scrutinise its influence on a third country, Canada, where, in response to the IRA, more than CAD 42 billion has been committed to secure three battery plants with a value of CAD 19 billion. The purpose of the authors' research is to determine if the incentive packages offered by the Canadian Government were truly necessary to secure the investments and if Canada can expect benefits comparable to those that similar support would engender in the USA, where the IRA was conceived. Based on the authors' analysis, Canada's obligation to provide substantial incentives do not guarantee benefits on par with those of a core automotive country. Hence, as a semi-peripheral automotive nation, Canada's three new battery plants are unlikely to produce core country-like results, raising doubts about the effectiveness of Canada's strategy.

• Record URL:
  • https://doi.org/10.1504/IJATM.2024.142134
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/14709511
• Supplemental Notes:
  • Copyright © 2024 Inderscience Enterprises Ltd.
• Authors:
  • Mordue, Greig
  • Vallejo, Bertha
• Publication Date: 2024

Language

• English

Media Info

• Media Type: Web
• Features: References;
• Pagination: pp 40-72
• Serial:
  • International Journal of Automotive Technology and Management
  • Volume: 24
  • Issue Number: 5
  • Publisher: Inderscience Enterprises Limited
  • ISSN: 1470-9511
  • Serial URL: http://www.inderscience.com/jhome.php?jcode=IJATM

Subject/Index Terms

• TRT Terms: Automobile parts industry; Electric batteries; Inflation; Investments; Motor vehicle industry; Public policy
• Geographic Terms: Canada; United States
• Subject Areas: Economics; Energy; Freight Transportation; Policy; Vehicles and Equipment;

Filing Info

• Accession Number: 01936370
• Record Type: Publication
• Files: TRIS
• Created Date: Nov 8 2024 3:52PM