Green industrial policy

With a focus on developing and emerging economies we explore the following questions: What type of industrial policy instruments work best, and in what circumstances, to support low carbon development? How can governments manage economic rents to mobilize long-term private investment in new clean technologies while avoiding political capture? How to best direct such investments towards opportunities for enhancing private sector competitiveness, localising value chains, transferring know-how, and building innovation systems for clean technologies?


Project description

In the past years green industrial policy instruments have gained increasing popularity with governments in developed and developing countries. However, these instruments need to be adapted to local circumstances, needs and capabilities. We explore how country-specific policy goals and actor constellations shape the policy making process and give rise to incentive systems. Furthermore, we aim to answer the following questions: What type of industrial policy instruments work best, and in what circumstances, to hasten the restructuring of the economy towards environmental sustainability? How can governments manage economic rents to mobilize long-term private investment in promising new clean technologies while avoiding political capture? How to best direct such investments towards opportunities for enhancing private sector competitiveness, localising value chains, transferring know-how, and building innovation systems for clean technologies in emerging and developing countries?

We focus primarily on developing and emerging economies, such as Middle East and North African countries, India, China and South Africa. However, we are also drawing lessons from industrialised countries, mainly in Europe.

Events

Greening Innovations for Sustainable Development

Managing economic rents for the green transformation

Sustainable Development: Do we need a green industrial policy?

Green technology cooperation with emerging economies

Links

Green transition, industrial policy, and economic development
Kemp, René / Babette Never (2017)
in: Oxford Review of Economic Policy 33 (1), 66-84

Sustainability-oriented innovation systems in China and India
Altenburg, Tilman (ed.) (2016)
Abingdon, UK: Routledge

Taxing carbon as an instrument of green industrial policy in developing countries
Pegels, Anna (2016)
Discussion Paper 23/2016