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Who will win the green race? In search of environmental competitiveness and innovation

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Listed:
  • Sam Fankhauser
  • Alex Bowen
  • Raphael Calel
  • Antoine Dechezlepr�tre
  • David Grover
  • James Rydge
  • Misato Sato

Abstract

As the world considers greener forms of economic growth, countries and sectors are beginning to position themselves for the emerging green economy. This paper combines patent data with international trade and output data in order to investigate who the winners of this �green race� might be. The analysis covers 110 manufacturing sectors in eight countries (China, Germany, France, Italy, Japan, South Korea, UK and the US) over 2005-2007. We identify three success factors for green competitiveness at the sector level: the speed at which sectors convert to green products and processes (measured by green innovation), their ability to gain and maintain market share (measured by existing comparative advantages) and a favourable starting point (measured by current output). We find that the green race is likely to alter the present competitiveness landscape. Many incumbent country-sectors with strong comparative advantages today lag behind in terms of green conversion, suggesting that they could lose their competitive edge. Japan, and to a lesser extent Germany, appear best placed to benefit from the green economy, while other European countries (Italy in particular) could fall behind. However, the green economy is much broader than the few flagship sectors on which the debate tends to focus, and each country has its niches of green competitiveness.

Suggested Citation

  • Sam Fankhauser & Alex Bowen & Raphael Calel & Antoine Dechezlepr�tre & David Grover & James Rydge & Misato Sato, 2012. "Who will win the green race? In search of environmental competitiveness and innovation," GRI Working Papers 94, Grantham Research Institute on Climate Change and the Environment.
  • Handle: RePEc:lsg:lsgwps:wp94
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Sam Fankhauser & Frank Jotzo, 2017. "Economic growth and development with low-carbon energy," CCEP Working Papers 1705, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.
    2. Iyer, Gokul C. & Clarke, Leon E. & Edmonds, James A. & Hultman, Nathan E., 2016. "Do national-level policies to promote low-carbon technology deployment pay off for the investor countries?," Energy Policy, Elsevier, vol. 98(C), pages 400-411.
    3. repec:gam:jsusta:v:9:y:2017:i:10:p:1858-:d:115230 is not listed on IDEAS
    4. Patricia Laurens & Christian Bas & Antoine Schoen & Stéphane Lhuillery, 2016. "Technological contribution of MNEs to the growth of energy-greentech sector in the early post-Kyoto period," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(2), pages 169-191, April.
    5. Juliana Subtil Lacerda & Jeroen C. J. M. van den Bergh, 2014. "International Diffusion of Renewable Energy Innovations: Lessons from the Lead Markets for Wind Power in China, Germany and USA," Energies, MDPI, Open Access Journal, vol. 7(12), pages 1-28, December.
    6. Barbier, Edward B., 2016. "Is green growth relevant for poor economies?," Resource and Energy Economics, Elsevier, vol. 45(C), pages 178-191.
    7. Yongrok Choi, 2015. "Intermediary Propositions for Green Growth with Sustainable Governance," Sustainability, MDPI, Open Access Journal, vol. 7(11), pages 1-17, November.
    8. repec:gam:jecomi:v:6:y:2018:i:1:p:5-:d:128031 is not listed on IDEAS
    9. Alex Bowen, 2014. "Green growth," Chapters,in: Handbook of Sustainable Development, chapter 15, pages 237-251 Edward Elgar Publishing.
    10. repec:gam:jsusta:v:9:y:2017:i:8:p:1369-:d:106925 is not listed on IDEAS
    11. Martijn van den Berge & Anet Weterings, 2014. "Relatedness in eco-technological development in European regions," Papers in Evolutionary Economic Geography (PEEG) 1413, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2014.

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    JEL classification:

    • N0 - Economic History - - General

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