Green industrial policy: accelerating structural change towards wealthy green economies
Altenburg, Tilman / Dani Rodrik
External Publications
(2017)
in: Tilman Altenburg / Claudia Assmann (eds.), Green industrial policy: concept, policies, country experiences, Geneva; Bonn: UN Environment; German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE), 1-20
ISBN: 978-92-807-3685-4
Volltext/Document
The Chapter discusses the conceptual foundations of green industrial policy. Altenburg and Rodrik explain why looking through the lens of industrial policy provides important insights for a green transformation. They summarize lessons learned from decades of experimentation with, and research on, industrial policy and bring out key principles of smart policymaking that maximize the government’s ability to overcome market failures while keeping the inherent risks of misallocation and political capture to a minimum. Subsequently, the authors identify six extra challenges of green transformations and explain the ways green industrial policy must go beyond the common practice of industrial policy in a business-as-usual setting.
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