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“Big Push” Green Industrial Policy

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  • Niko Jaakkola
  • Frederick van der Ploeg
  • Anthony Venables

Abstract

Carbon pricing is a central part of climate policy, but is politically difficult while the economy is still reliant on fossil fuels The long-lived green investments required to break the carbon lock-in depend on expected taxes, not current taxes Policies which target the expectations of the private sector can shock the economy and move it onto a green path Green industrial policy can leverage technological/political feedbacks to kick-start the transition Fossil fuel bans can help break the technological and political lock-in into carbon reliance

Suggested Citation

  • Niko Jaakkola & Frederick van der Ploeg & Anthony Venables, 2023. "“Big Push” Green Industrial Policy," EconPol Forum, CESifo, vol. 24(06), pages 32-36, November.
    • Handle: RePEc:ces:epofor:v:24:y:2023:i:06:p:32-36
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