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Climate Change and Industrial Policy

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  • Wim Naudé

    (Maastricht School of Management, Endepolsdomein 150, 6229 EP Maastricht, The Netherlands and UNU‐ WIDER, Katajanokanlaituri 6b, 00160 Helsinki, Finland.)

Abstract

Industrial policy (IP) can make an important contribution to both environmental and social sustainability. The purpose of this paper is to explore the new rationale for IP due to climate change and to determine its implications for the how of industrial policy. Five implications are discussed, namely the need for international coordination of IPs; for putting human‐ development, and not emission targets, as the overriding objective of low‐carbon IP; of stimulating innovation for energy efficiency, energy diversification, and carbon capture and storage; and for aligning IP with trade policies. Finally the funding needs of low‐carbon IPs are discussed, and the importance of private sector funding emphasized.

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File URL: http://web2.msm.nl/RePEc/msm/wpaper/MSM-WP2011-03.pdf
File Function: First version, 2011
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Bibliographic Info

Paper provided by Maastricht School of Management in its series Working Papers with number 2011/03.

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Length: 35 pages
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:msm:wpaper:2011/03

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Keywords: climate change; sustainable development; industrialization; industrial policy; low‐ carbon growth;

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  1. Yan Dong & John Whalley, 2010. "Carbon, Trade Policy and Carbon Free Trade Areas," The World Economy, Wiley Blackwell, vol. 33(9), pages 1073-1094, 09.
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  10. Scott Barrett, 2009. "The Coming Global Climate-Technology Revolution," Journal of Economic Perspectives, American Economic Association, vol. 23(2), pages 53-75, Spring.
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  13. Urs Steiner Brandt & Gert Tinggaard Svendsen, 2003. "Fighting windmills? EU industrial interests and global climate negotiations," Working Papers 37/03, University of Southern Denmark, Department of Environmental and Business Economics.
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