Externe Publikationen

Rent management capabilities for the green transformation

Johnson, Oliver / Tilman Altenburg / Hubert Schmitz
Externe Publikationen (2014)

in: Anna Pegels, Green industrial policy in emerging countries, London: Routledge, 9-37

ISBN: 978-0-415-87067-2
Information

Climate Change and other global environmental imbalances testify that markets fail to manage resources sustainably and efficiently. There is an increasing agreement that where markets fail, government needs to intervene. There is, however, no agreement on how best to intervene. In order to explore what is needed to get the process of restructuring underway and trigger a self-reinforcing dynamic, there Climate Change and other global environmental imbalances testify that markets fail to manage resources sustainably and efficiently. There is an increasing agreement that where markets fail, government needs to intervene. There is, however, no agreement on how best to intervene. In order to explore what is needed to get the process of restructuring underway and trigger a self-reinforcing dynamic, there is no golden path, but principles and tools for good rent management. This article sought to define the concept of rent management, to highlight the challenge of rent management in the context of the green transformation and to identify which rent management capabilities must be developed to facilitate the green transformation. The authors recognize the risks of misallocation and political abuse involved in any creation of policy rents; but strongly emphasize that the most fundamental risk is doing too little; that is failing to mobilize the investments needed to avoid irreversible environmental damage. Rent management must take place throughout the policy cycle as each stage offers opportunities for rent-seeking and capture. Key to building rent management capabilities and applying them through the policy cycle is the establishment of strong policy learning mechanisms. The learning mechanisms should draw upon experience from other countries, but must be tailored to local conditions. Ensuring successful rent management is a huge challenge, but the required capabilities can be learnt.