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The Role of Industrial Policy in the Renewable Energy Sector

In: Environmental and Energy Policy and the Economy, volume 7

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  • Todd D. Gerarden
  • Mar Reguant
  • Daniel Yi Xu

Abstract

Renewable electricity generation technology costs have fallen dramatically, investment has grown rapidly, and renewables are now a pillar of climate and decarbonization policy. Part of the credit for these trends goes to environmental policy efforts to support renewable energy as a substitute to fossil energy. The recent rise in protectionism, industrial policy, and geopolitical tensions has the potential to either undermine or enhance these environmental policy objectives. In this paper, we provide an overview of renewable energy economics and policy, with a focus on solar and wind power. We outline theoretical rationales for industrial policy and review recent empirical research, paying particular attention to how renewable energy policies have generated spillovers across firms and countries. We close by highlighting how this recent evidence can inform ongoing industrial policy debates.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Todd D. Gerarden & Mar Reguant & Daniel Yi Xu, 2025. "The Role of Industrial Policy in the Renewable Energy Sector," NBER Chapters, in: Environmental and Energy Policy and the Economy, volume 7, pages 97-148, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:15180
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    File URL: https://www.journals.uchicago.edu/doi/10.1086/738542
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    1. Jean, Sebastian & Méjean, Isabelle & Schularick, Moritz, 2025. "Leitlinien für eine europäische Wirtschaftspolitik gegenüber China [Guidelines for a European economic policy towards China]," Kiel Policy Briefs 197, Kiel Institute for the World Economy.

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    More about this item

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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