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Green transition, industrial policy, and economic development

Author

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  • René Kemp
  • Babette Never

Abstract

This paper outlines possibilities for a green industrial policy with particular emphasis on developing countries. The question of green industrial policy is investigated by examining experiences and barriers to phasing-in green technologies, focusing on solar PV and energy efficiency as areas for a green industrial policy. The paper outlines a green transition approach to sustain a shift to cleaner and more energy-efficient production processes through clever policy mixes involving elements of push and pull. Rent management and policy adaptation by competent authorities are also part of the model. The paper offers concrete guidance to the question of what governments in developing countries can usefully and realistically do to phase in green technologies given the priorities for development, imperfect institutions for policy-making and implementation, weakly developed innovation systems, and problems of lock-in.

Suggested Citation

  • René Kemp & Babette Never, 2017. "Green transition, industrial policy, and economic development," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(1), pages 66-84.
    • Handle: RePEc:oup:oxford:v:33:y:2017:i:1:p:66-84.
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    File URL: http://hdl.handle.net/10.1093/oxrep/grw037
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    More about this item

    Keywords

    green industrial policy; developing countries;

    JEL classification:

    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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