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Green Industrial policy: trade and theory

  • Karp, Larry

    ()

    (University of California, Berkeley. Dept of agricultural and resource economics)

  • Stevenson, Megan

    ()

    (University of California, Berkeley. Dept of agricultural and resource economics)

This paper studies the reality and the potential for green industrial policy. We provide a summary of the green industrial policies, broadly understood, for five countries. We then consider the relation between green industrial policies and trade disputes, emphasizing theBrazil-US dispute involving ethanol and the broader US-China dispute. The theory of public policy provides many lessons for green industrial policy. We select four of these lessons, involving the Green Paradox, the choice of quantities versus prices with endogenous investment, the coordination issues arising from emissions control, and theability of green industrial policies to promote cooperation in reducing a global public bad like carbon emissions.

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Paper provided by University of California at Berkeley, Department of Agricultural and Resource Economics and Policy in its series CUDARE Working Paper Series with number 1126.

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Length: 42 pages
Date of creation: Jan 2012
Date of revision:
Handle: RePEc:are:cudare:1126
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References listed on IDEAS
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  1. Larry Karp & Jiangfeng Zhang, 2012. "Taxes versus quantities for a stock pollutant with endogenous abatement costs and asymmetric information," Economic Theory, Springer, vol. 49(2), pages 371-409, February.
  2. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, Elsevier.
  3. Chang, Ha-Joon, 2006. "Industrial policy in East Asia - lessons for Europe," EIB Papers 11/2006, European Investment Bank, Economics Department.
  4. Karp, Larry & Simon, Leo, 2012. "Participation games and international environmental agreements: a nonparametric model," CUDARE Working Paper Series 1127, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  5. Hoel, Michael & Karp, Larry, 2002. "Taxes versus quotas for a stock pollutant," Resource and Energy Economics, Elsevier, vol. 24(4), pages 367-384, November.
  6. Hans-Werner Sinn, 2008. "Public policies against global warming: a supply side approach," International Tax and Public Finance, Springer, vol. 15(4), pages 360-394, August.
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