## 4 Teaching Guide: Learning from Mexico's Energy Transition
### Case Analysis: Learning from Mexico's Energy Transition  
Table 14 summarises various types of lock-in and key issues. The learning activation framework starts by identifying the factors that establish, maintain, and reproduce carbon lock-in. Educators can decide whether students should focus on Mexico's energy transition or on their home countries, using the Mexican case study as the reference point. Factors enforcing carbon lock-in include:  
* Resource endowment effect: Factors that influence product layout. The geophysical location, climatic conditions and availability of certain fossil resources influence coal, oil, metal, and mining development levels, which critically affect the product layout of the carbon-intensive industry [126]. * Scale effect: Demand increases along with supply because consumer prices decrease, leading to more emissions [127]. * Structural effect: How energy supply influences energy demand and vice versa. When fossil fuel dominates the energy consumption structure, it is difficult to implement fundamental changes to the energy system [127]. * Governance effect: Volatile and unpredictable policymaking sustain carbon lock-in, as does limited participation because one government's energy policy framework is likely be tossed out by the following administration. * Market effect: Investment capital for carbon-intensive energy technologies sustains carbon lock-in. FDI is greening, so increased FDI improves environmental regulation and contributes to clean energy development through the introduction and absorption of advanced technology [127]. * Technological effect: Sustaining carbon lock-in requires the best technology available. The profitability of fossil-based energy technologies is defined by the tax regime, operational costs, upfront costs, consumer income level, and competitive access to raw materials [127]. Educators can divide the students into groups and have each group choose an \"enforcer of carbon lock-in\" and identify the key issues (Appendix A) for escaping carbon lock-in. Escaping infrastructure and institutional carbon lock-in requires strategies for dealing with the energy supply monopoly (by coping with or ending it). Another issue is affordability. Reducing energy prices in a clean energy scenario or developing mechanisms to internalise negative externalities of fossil-based energies can dismantle behavioural carbon lock-in. Students should elaborate a key issue of their choice in an essay. The next step is to identify case snags, which are formulated like the following sample questions. * If fossil-based energy technologies like coal and oil are no longer profitable, what should be done with the stranded assets--the fossil fuel resources that would go unused as a result of climate protection measures or changing demand [128]. Should developing countries like Mexico be compensated for their stranded assets? * Is privatising energy sectors suitable and feasible, especially in developing countries? How is capacity building for smaller players key to a genuine liberalisation of the energy market? * Is market concentration in power generation inevitable? Should there be more diversity amongst energy supply providers? * How does the energy sector monopoly hinder the transition towards sustainable energy? How can smaller players break state-led monopoly? * Which cultural factors are inhibiting this transition in Mexico or in the students' home countries?How can public procurement help advance clean energy deployment in Mexico or in their countries? * Will consumers pay higher premiums for sustainable energy? If yes, how can this be justified? * Is it possible to differentiate political from economic interests? The next part of the learning activation framework uses a stakeholder mind map to teach how to get an overview of the different stakeholders and their interactions. Students must understand that power relations between stakeholders can both sustain and eliminate carbon lock-in, and that the power asymmetry between stakeholders is constantly changing.