IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/17242.html
   My bibliography  Save this paper

The Political Economics of Green Transitions

Author

Listed:
  • Besley, Tim
  • Persson, Torsten

Abstract

Reducing the emissions of greenhouse gases may be almost impossible without a green transition -- a process of radically changing consumption and production patterns. We put forward a dynamic model, where switches in consumption and production create a dynamic externality that can help or hinder a green transition. In democratic societies, governments cannot commit to future policy paths and must aggregate conflicting interests across different voters. Moreover, democratic politics include a range of informal activities, firm lobbying, as well as activist protests against brown firms and promotions of green firms. These different aspects of politics constrain feasible policies. We ask whether, and under what circumstances, the interaction of political forces and market forces bring about a green transition.

Suggested Citation

  • Besley, Tim & Persson, Torsten, 2022. "The Political Economics of Green Transitions," CEPR Discussion Papers 17242, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17242
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP17242
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. David Popp, 2002. "Induced Innovation and Energy Prices," American Economic Review, American Economic Association, vol. 92(1), pages 160-180, March.
    2. Putnam, Robert D., 1988. "Diplomacy and domestic politics: the logic of two-level games," International Organization, Cambridge University Press, vol. 42(3), pages 427-460, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fangzhi Wang & Hua Liao & Richard S.J. Tol & Changjing, "undated". "Endogenous preference for non-market goods in carbon abatement decision," Working Paper Series 0224, Department of Economics, University of Sussex Business School.
    2. Donatella Gatti & Julien Vauday, 2023. "Environmental transition through social change and lobbying by citizens," Working Papers hal-04158754, HAL.
    3. Van Der Straten, Yasmine & Perotti, Enrico & Van Der Ploeg, Frederick, 2024. "Political Economy of Climate Change Adaptation," CEPR Discussion Papers 18959, C.E.P.R. Discussion Papers.
    4. Robert Huang & Matthew E. Kahn, 2024. "Household carbon dioxide emissions Engel Curve dynamics," Contemporary Economic Policy, Western Economic Association International, vol. 42(3), pages 396-415, July.
    5. Donatella Gatti & Julien Vauday, 2023. "Green cultural transition, environmental taxes, and collective lobbying by social groups of citizens," Post-Print hal-04189019, HAL.
    6. Ye, Xiang & Yue, Pengpeng, 2024. "What matters to reshaping consumption patterns in China? Digital inclusion and supply chain," Finance Research Letters, Elsevier, vol. 59(C).
    7. Xu, Dandan & Guo, Dongli & Yue, Pengpeng & Li, Mengshi, 2024. "Household green consumption: Does digital inclusion matter?," International Review of Financial Analysis, Elsevier, vol. 91(C).
    8. Cha, Min-kyeong & Struthers, Cory L. & Brown, Marilyn A. & Kale, Snehal & Chapman, Oliver, 2024. "Toward residential decarbonization: Analyzing social-psychological drivers of household co-adoption of rooftop solar, electric vehicles, and efficient HVAC systems in Georgia, U.S," Renewable Energy, Elsevier, vol. 226(C).
    9. Hua Feng & Zhihong Zhang & Qinglu Wang & Lingyun Yang, 2024. "Does a Company’s Position within the Interlocking Director Network Influence Its ESG Performance?—Empirical Evidence from Chinese Listed Companies," Sustainability, MDPI, vol. 16(10), pages 1-29, May.
    10. Josse Delfgaauw & Otto Swank, 2023. "The Gasoline Climate Trap," Tinbergen Institute Discussion Papers 23-025/VII, Tinbergen Institute.
    11. Lorenz Dögnitz & Théo Konc & Linus Mattauch, 2024. "The Political Economics of Green Transitions: Optimal Intertemporal Policy Response," Berlin School of Economics Discussion Papers 0047, Berlin School of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jacob Wood & Gohar Feroz Khan, 2015. "International trade negotiation analysis: network and semantic knowledge infrastructure," Scientometrics, Springer;Akadémiai Kiadó, vol. 105(1), pages 537-556, October.
    2. Bosetti, Valentina & Carraro, Carlo & Duval, Romain & Tavoni, Massimo, 2011. "What should we expect from innovation? A model-based assessment of the environmental and mitigation cost implications of climate-related R&D," Energy Economics, Elsevier, vol. 33(6), pages 1313-1320.
    3. Hu, Hui & Qi, Shaozhou & Chen, Yuanzhi, 2023. "Using green technology for a better tomorrow: How enterprises and government utilize the carbon trading system and incentive policies," China Economic Review, Elsevier, vol. 78(C).
    4. Ethan B Kapstein, 2006. "Architects of stability? International cooperation among financial supervisors," BIS Working Papers 199, Bank for International Settlements.
    5. Carrión-Flores, Carmen E. & Innes, Robert, 2010. "Environmental innovation and environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 59(1), pages 27-42, January.
    6. Nicholas Bloom & Tarek Alexander Hassan & Aakash Kalyani & Josh Lerner & Ahmed Tahoun, 2021. "The diffusion of disruptive technologies," CEP Discussion Papers dp1798, Centre for Economic Performance, LSE.
    7. Hille, Erik & Althammer, Wilhelm & Diederich, Henning, 2020. "Environmental regulation and innovation in renewable energy technologies: Does the policy instrument matter?," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    8. de la Croix, David & Gosseries, Axel, 2012. "The natalist bias of pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 63(2), pages 271-287.
    9. Balint, T. & Lamperti, F. & Mandel, A. & Napoletano, M. & Roventini, A. & Sapio, A., 2017. "Complexity and the Economics of Climate Change: A Survey and a Look Forward," Ecological Economics, Elsevier, vol. 138(C), pages 252-265.
    10. Todd D. Gerarden & Richard G. Newell & Robert N. Stavins, 2017. "Assessing the Energy-Efficiency Gap," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1486-1525, December.
    11. Kari Irwin Otteburn, 2023. "All in favour? Indian business interests and the India-EU FTA," Asia Europe Journal, Springer, vol. 21(3), pages 311-329, September.
    12. Cai, Yiyong & Newth, David & Finnigan, John & Gunasekera, Don, 2015. "A hybrid energy-economy model for global integrated assessment of climate change, carbon mitigation and energy transformation," Applied Energy, Elsevier, vol. 148(C), pages 381-395.
    13. Francesco Nicolli & Francesco Vona & Lionel Nesta, 2012. "Determinants of Renewable Energy Innovation: Environmental Policies vs. Market Regulation," Working Papers 201204, University of Ferrara, Department of Economics.
    14. Simon Hug & Tobias Schulz, 2007. "Referendums in the EU’s constitution building process," The Review of International Organizations, Springer, vol. 2(2), pages 177-218, June.
    15. Hosan, Shahadat & Rahman, Md Matiar & Karmaker, Shamal Chandra & Saha, Bidyut Baran, 2023. "Energy subsidies and energy technology innovation: Policies for polygeneration systems diffusion," Energy, Elsevier, vol. 267(C).
    16. Marcelo de Paiva Abreu, 2005. "The FTAA and the political economy of protection in Brazil and the US," Textos para discussão 494, Department of Economics PUC-Rio (Brazil).
    17. Korrakot Phomsoda & Nattapong Puttanapong & Mongkut Piantanakulchai, 2021. "Economic Impacts of Thailand’s Biofuel Subsidy Reallocation Using a Dynamic Computable General Equilibrium (CGE) Model," Energies, MDPI, vol. 14(8), pages 1-21, April.
    18. Zhangsheng Liu & Liuqingqing Yang & Liqin Fan, 2021. "Induced Effect of Environmental Regulation on Green Innovation: Evidence from the Increasing-Block Pricing Scheme," IJERPH, MDPI, vol. 18(5), pages 1-15, March.
    19. Bretschger, Lucas & Lechthaler, Filippo & Rausch, Sebastian & Zhang, Lin, 2017. "Knowledge diffusion, endogenous growth, and the costs of global climate policy," European Economic Review, Elsevier, vol. 93(C), pages 47-72.
    20. Paul Poast, 2013. "Issue linkage and international cooperation: An empirical investigation," Conflict Management and Peace Science, Peace Science Society (International), vol. 30(3), pages 286-303, July.

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:17242. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.