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Political Liability of Foreignness? Developer Identity and Opposition to Coal

Sat, September 2, 8:00 to 9:30am PDT (8:00 to 9:30am PDT), Virtual, Virtual 1

Abstract

Coal-fired power plants have fueled the economic development of many countries, but are increasingly controversial due to their contribution to global climate change. Why are some proposed coal projects opposed, while others are not? This paper focuses on the importance of developer identity --- whether the developer is foreign or domestic --- as an important factor in public opposition to new coal. Triangulating across statistical analyses and two case studies, the paper makes three main claims. First, projects with foreign developers are more likely to be protested. Second, while the political liability of foreignness is not restricted only to Chinese developers, Chinese developers are especially likely to face protests. And third, foreign developers may face a political liability of foreignness because of a combination of perceived injustice heightening grievances and the presence of foreign developers enhancing political opportunities. Overall, these findings have implications for scholars of foreign investment, transnational advocacy, and infrastructure siting. At the same time, they offer crucial insight into the dynamics underlying international energy development, and in turn, the politics of climate change.

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