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Green Deals around the World

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This essay examines the rise of “Green Deals” as large-scale state-sponsored active industrial policies to accelerate a transition toward climate neutrality. Building on the concept of mission-oriented innovation policy (MOIP), it documents how environmental and active industrial policies have converged across advanced economies, reshaping the policy toolkit toward direct public investment and publicly supported investment. The essay provides detailed accounts of the European Union’s Green Deal and the U.S. counterpart, situating them in the broader political economy of climate policy. It also highlights initiatives in the United Kingdom, Germany, and Sweden, which additionally illustrate Grean Deal initiatives and how the latter national strategies adapt EU-level frameworks and institutional constraints. A comparative analysis underscores key differences between the EU’s fragmented, case-by-case approach and the more streamlined but fiscally uncertain U.S. model. The essay concludes by stressing the need for greater scrutiny of these policies, including their economic efficiency and fiscal sustainability.

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  • Stenkula, Mikael, 2026. "Green Deals around the World," Working Paper Series 1554, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:1554
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    1. Mariana Mazzucato, 2018. "Mission-oriented innovation policies: challenges and opportunities," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(5), pages 803-815.
    2. Jean Pisani-Ferry & Simone Tagliapietra, 2024. "An investment strategy to keep the European Green Deal on track," Bruegel Policy Brief node_10497, Bruegel.
    3. Per-Olov Johansson & Bengt Kriström, 2026. "Green Industrial Megaprojects: A Welfare Economics Perspective," International Studies in Entrepreneurship, in: Magnus Henrekson & Christian Sandström & Mikael Stenkula (ed.), A Green Entrepreneurial State?, pages 173-185, Springer.
    4. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    5. Michel Deshaies, 2026. "The German Energiewende: A Green Deal Template or Planned Failure?," International Studies in Entrepreneurship, in: Magnus Henrekson & Christian Sandström & Mikael Stenkula (ed.), A Green Entrepreneurial State?, pages 131-147, Springer.
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    1. Magnus Henrekson & Christian Sandström & Mikael Stenkula, 2026. "The Pitfalls of Green Deals: Introduction and Synthesis," International Studies in Entrepreneurship, in: Magnus Henrekson & Christian Sandström & Mikael Stenkula (ed.), A Green Entrepreneurial State?, pages 3-32, Springer.

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    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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