Publication:
Green Industrial Policies : When and How

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dc.contributor.authorHallegatte, Stephane
dc.contributor.authorFay, Marianne
dc.contributor.authorVogt-Schilb, Adrien
dc.date.accessioned2014-02-04T20:33:44Z
dc.date.available2014-02-04T20:33:44Z
dc.date.issued2013-10
dc.description.abstractGreen industrial policies can be defined as industrial policies with an environmental goal -- or more precisely, as sector-targeted policies that affect the economic production structure with the aim of generating environmental benefits. This paper provides a framework to assess their desirability depending on the effectiveness and political acceptability of price instruments. The main messages are the following. (i) Greening growth processes to the extent and with the speed needed cannot be done without industrial policies, even if prices can be adjusted to reflect environmental objectives. (ii) "Sunrise" green industrial policies are needed because they support the development of critical new technologies and sectors, bring down costs, and allow for reduced emissions in the short term even in the absence of carbon pricing. (iii) "Sunset" green industrial policies and trade policies may be needed in conjunction with safety nets to make carbon pricing politically or socially acceptable. They can help mitigate the impact of a carbon price on competitiveness and unemployment and smooth the transition by helping industries adjust to the new conditions. (iv) Green or not, industrial policy requires carefully navigating the twin dangers of market and governance failure. The viability of supported technologies and sectors is difficult to assess through a market-test given their dependence on continued environmental policies or pricing -- such as a carbon price. Particular attention must be paid to avoid potential unintended negative effects, such as rebound effects (especially if prices are inappropriate), misallocation of capital, or capture and rent-seeking behaviors.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/10/18446583/green-industrial-policies-green-industrial-policies
dc.identifier.doi10.1596/1813-9450-6677
dc.identifier.urihttps://hdl.handle.net/10986/16892
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6677
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectABATEMENT
dc.subjectABATEMENT COSTS
dc.subjectACCOUNTING
dc.subjectACID
dc.subjectACID RAIN
dc.subjectAIRCRAFT
dc.subjectALLOCATION
dc.subjectALLOWANCE
dc.subjectASYMMETRIC INFORMATION
dc.subjectATMOSPHERE
dc.subjectAUTOMOBILE
dc.subjectAUTOMOBILE INDUSTRY
dc.subjectBUS
dc.subjectBUS PURCHASE
dc.subjectCAPACITY
dc.subjectCAPITAL
dc.subjectCAPITAL MARKETS
dc.subjectCAR
dc.subjectCAR INDUSTRY
dc.subjectCAR TECHNOLOGIES
dc.subjectCARBON
dc.subjectCARBON CAPTURE
dc.subjectCARBON ECONOMY
dc.subjectCARBON EMISSIONS
dc.subjectCARBON LEAKAGE
dc.subjectCARBON MARKETS
dc.subjectCARBON PRICE
dc.subjectCARBON PRICES
dc.subjectCARBON TAX
dc.subjectCARBON TAXES
dc.subjectCARS
dc.subjectCLEAN ENERGY
dc.subjectCLIMATE
dc.subjectCLIMATE CHANGE
dc.subjectCLIMATE CHANGE LEVY
dc.subjectCLIMATE CHANGE MITIGATION
dc.subjectCLIMATE POLICIES
dc.subjectCLIMATE POLICY
dc.subjectCO2
dc.subjectCOAL
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPARATIVE ADVANTAGES
dc.subjectCOMPETITIVENESS
dc.subjectCONCENTRATES
dc.subjectCONSUMPTION
dc.subjectCOST-BENEFIT
dc.subjectCOST-BENEFIT ANALYSIS
dc.subjectCREDIT
dc.subjectCRITERIA
dc.subjectDECREASE IN EMISSIONS
dc.subjectDEMAND
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT POLICY
dc.subjectDIFFUSION
dc.subjectDISPLACED WORKERS
dc.subjectDISTRIBUTIONAL EFFECTS
dc.subjectDRIVERS
dc.subjectECOLOGICAL ECONOMICS
dc.subjectECONOMIC ANALYSIS
dc.subjectECONOMIC BENEFITS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC IMPACTS
dc.subjectECONOMIC PERFORMANCE
dc.subjectECONOMIC POLICIES
dc.subjectECONOMIC RESEARCH
dc.subjectECONOMIC SECTORS
dc.subjectECONOMIC SITUATION
dc.subjectECONOMIC STRUCTURE
dc.subjectECONOMIC STRUCTURES
dc.subjectECONOMIC SYSTEMS
dc.subjectECONOMICS OF CLIMATE CHANGE
dc.subjectECONOMIES OF SCALE
dc.subjectEFFICIENT VEHICLE
dc.subjectELECTRIC CARS
dc.subjectELECTRIC VEHICLES
dc.subjectELECTRICITY
dc.subjectELECTRICITY PRODUCTION
dc.subjectELECTRICITY SUPPLY
dc.subjectEMISSION
dc.subjectEMISSION ABATEMENT
dc.subjectEMISSION REDUCTIONS
dc.subjectEMISSION TRADING
dc.subjectEMISSIONS
dc.subjectEMISSIONS LEAKAGE
dc.subjectENERGY CONSUMPTION
dc.subjectENERGY ECONOMICS
dc.subjectENERGY EFFICIENCY
dc.subjectENERGY INTENSITY
dc.subjectENERGY POLICY
dc.subjectENERGY PRICE
dc.subjectENERGY PRICES
dc.subjectENERGY PRODUCTION
dc.subjectENERGY SUBSIDIES
dc.subjectENVIRONMENTAL BENEFITS
dc.subjectENVIRONMENTAL COSTS
dc.subjectENVIRONMENTAL EXTERNALITIES
dc.subjectENVIRONMENTAL EXTERNALITY
dc.subjectENVIRONMENTAL POLICIES
dc.subjectENVIRONMENTAL POLICY
dc.subjectENVIRONMENTAL REGULATION
dc.subjectENVIRONMENTAL REGULATIONS
dc.subjectENVIRONMENTAL TAX
dc.subjectEQUITY
dc.subjectEXCHANGE RATES
dc.subjectEXPORTS
dc.subjectEXTERNALITIES
dc.subjectFINANCE
dc.subjectFINANCIAL ASSISTANCE
dc.subjectFIXED COSTS
dc.subjectFOREIGN COMPETITION
dc.subjectFOREIGN EXCHANGE
dc.subjectFOSSIL FUEL
dc.subjectFREE EMISSION
dc.subjectFUEL ECONOMY
dc.subjectFUEL EFFICIENCY
dc.subjectFUEL PRICES
dc.subjectFUEL SUBSIDIES
dc.subjectFUEL TAXES
dc.subjectFUEL TECHNOLOGIES
dc.subjectGAS
dc.subjectGASOLINE
dc.subjectGASOLINE PRICE
dc.subjectGDP
dc.subjectGHG
dc.subjectGLOBAL CARBON MARKET
dc.subjectGLOBAL EMISSION
dc.subjectGLOBAL EMISSIONS
dc.subjectGLOBAL WARMING
dc.subjectGNP
dc.subjectGOODS
dc.subjectGREENHOUSE
dc.subjectGREENHOUSE GASES
dc.subjectGROWTH POLICIES
dc.subjectGROWTH RATE
dc.subjectHIGH ENERGY
dc.subjectHIGH-SPEED TRAIN
dc.subjectHIGH-SPEED TRAINS
dc.subjectHYBRID CARS
dc.subjectIMPORTS
dc.subjectINCENTIVES
dc.subjectINCOME
dc.subjectINCOME LEVELS
dc.subjectINCREASING RETURNS
dc.subjectINDUSTRIALIZATION
dc.subjectINEFFICIENCY
dc.subjectINFLUENCE
dc.subjectINFRASTRUCTURE
dc.subjectINFRASTRUCTURE DEVELOPMENT
dc.subjectINNOVATION
dc.subjectINNOVATIONS
dc.subjectINPUTS
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL TRADE
dc.subjectINVESTMENT
dc.subjectINVESTMENTS
dc.subjectIRON
dc.subjectIRRADIATION
dc.subjectJOB CREATION
dc.subjectJOBS
dc.subjectLABOR
dc.subjectLABOR COSTS
dc.subjectLABOR MARKETS
dc.subjectLAW
dc.subjectLEAD
dc.subjectLESS
dc.subjectLOW-CARBON
dc.subjectLOWER PRICE
dc.subjectMACROECONOMICS
dc.subjectMARGINAL COST
dc.subjectMARKET
dc.subjectMARKET FAILURE
dc.subjectMARKET FAILURES
dc.subjectMARKETS
dc.subjectMASS TRANSIT
dc.subjectMODELS
dc.subjectMONETARY FUND
dc.subjectMONETARY TERMS
dc.subjectMONOPOLY
dc.subjectMONOPOLY RENTS
dc.subjectNATIONAL TRANSPORT
dc.subjectNEGATIVE IMPACT
dc.subjectNEGATIVE IMPACTS
dc.subjectNITROGEN
dc.subjectNITROGEN OXIDES
dc.subjectNO
dc.subjectOIL PRICE
dc.subjectOIL PRODUCTION
dc.subjectOLIGOPOLY
dc.subjectORGANIZATIONS
dc.subjectPATENTS
dc.subjectPERFORMANCE STANDARDS
dc.subjectPOLICIES
dc.subjectPOLICY
dc.subjectPOLICY MAKERS
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLLUTION
dc.subjectPORTFOLIO
dc.subjectPOWER GENERATION
dc.subjectPOWER PLANTS
dc.subjectPP
dc.subjectPRICE
dc.subjectPRICE CHANGE
dc.subjectPRICE CHANGES
dc.subjectPRICE ELASTICITY
dc.subjectPRICES
dc.subjectPRICING
dc.subjectPRIVATE TRANSPORT
dc.subjectPRODUCTION COSTS
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPROPERTY RIGHTS
dc.subjectPUBLIC PARTICIPATION
dc.subjectREAL INTEREST RATES
dc.subjectREGULATORY CAPTURE
dc.subjectRELATIVE PRICES
dc.subjectRENEWABLE ENERGY
dc.subjectRENT
dc.subjectRENT SEEKING
dc.subjectREVENUES
dc.subjectRISK
dc.subjectRISK MANAGEMENT
dc.subjectRISKS
dc.subjectSAFETY
dc.subjectSAFETY NETS
dc.subjectSCALE EFFECTS
dc.subjectSIGNALS
dc.subjectSILICON
dc.subjectSOCIAL CAPITAL
dc.subjectSOCIAL COSTS
dc.subjectSOLAR POWER
dc.subjectSTRUCTURAL CHANGE
dc.subjectSUBSIDY
dc.subjectSULFUR
dc.subjectSUPPLY
dc.subjectSUPPLY SIDE
dc.subjectTAXATION
dc.subjectTEMPERATURE
dc.subjectTHEORY
dc.subjectTRADE
dc.subjectTRADE BARRIERS
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE POLICIES
dc.subjectTRADE POLICY
dc.subjectTRADE SYSTEM
dc.subjectTRAINING
dc.subjectTRANSFERS
dc.subjectTRANSPARENCY
dc.subjectTRANSPORT SYSTEM
dc.subjectTRANSPORT TECHNOLOGIES
dc.subjectTRANSPORTATION
dc.subjectTRENDS
dc.subjectTRUCKS
dc.subjectTRUE
dc.subjectUNEMPLOYMENT
dc.subjectURBAN TRANSPORT
dc.subjectVALUE
dc.subjectVEHICLES
dc.subjectWELFARE
dc.subjectWIND
dc.subjectWIND POWER
dc.subjectWTO
dc.titleGreen Industrial Policies : When and Howen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crosscuttingsolutionareaClimate Change
okr.crossref.titleGreen Industrial Policies: When and How
okr.date.disclosure2013-10-01
okr.date.doiregistration2025-04-10T11:44:20.535471Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2013/10/18446583/green-industrial-policies-green-industrial-policies
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeTransport and ICT
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeEnvironment and Natural Resources
okr.guid994641468156896733
okr.identifier.doi10.1596/1813-9450-6677
okr.identifier.externaldocumentum000158349_20131028085557
okr.identifier.internaldocumentum18446583
okr.identifier.reportWPS6677
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/10/28/000158349_20131028085557/Rendered/PDF/WPS6677.pdfen
okr.topicEnvironment::Climate Change Mitigation and Green House Gases
okr.topicMacroeconomics and Economic Growth::Climate Change Economics
okr.topicSocial Protections and Labor::Labor Policies
okr.topicEconomic Theory and Research
okr.topicTransport Economics Policy and Planning
okr.topicTransport
okr.unitOffice of the Chief Economist, Sustainable Development Network
okr.volume1 of 1
relation.isAuthorOfPublication2fea2b63-4a74-5fbd-b964-71ef895df009
relation.isAuthorOfPublication2211eb84-299d-5db8-af3d-2f2e5f70af9f
relation.isAuthorOfPublication464cf77e-5e05-5115-97fe-d40b61d3996e
relation.isAuthorOfPublication.latestForDiscovery2211eb84-299d-5db8-af3d-2f2e5f70af9f
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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