Publication:
Green Industrial Policies : When and How

Loading...
Thumbnail Image
Files in English
English PDF (460.95 KB)
3,072 downloads
English Text (92.45 KB)
200 downloads
Date
2013-10
ISSN
Published
2013-10
Abstract
Green 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.
Link to Data Set
Citation
Hallegatte, Stephane; Fay, Marianne; Vogt-Schilb, Adrien. 2013. Green Industrial Policies : When and How. Policy Research Working Paper;No. 6677. © World Bank, Washington, DC. http://hdl.handle.net/10986/16892 License: CC BY 3.0 IGO.
Report Series
Report Series
Other publications in this report series
  • Publication
    Right to Education
    (Washington, DC: World Bank, 2024-03-12) Vargas, Juan F.; Rozo, Sandra V.
    About a third of the 7.7 million Venezuelans who have left their country due to political and economic turmoil have settled in neighboring Colombia. The extent to which the Colombian schooling system can absorb the massive demand for education of Venezuelan children is key for their future trajectory of human capital accumulation, as well as that of Colombian students in receiving communities. This paper estimates the effect of Venezuelan migration on educational outcomes of children living in settlement municipalities in Colombia, distinguish between the effect of the migration shock on native and migrant students. Specifically, it estimates the effect of the migration shock on school enrollment, dropout/promotion rates and standardized test scores. The identification relies on a plausibly exogenous measure of the predicted migration shock faced by each Colombian municipality every year. The findings show that the migration shock increased the enrollment of Venezuelan students in both public and private schools and in all school grades, but also generated negative spillovers related to failing promotion rates and increasing dropout. This paper documents that these negative effects are explained by the differential enrollment capacity of schools, as well as by the deterioration of key school inputs.
  • Publication
    Environmental Policy under Weak Institutions
    (Washington, DC: World Bank, 2024-03-11) Karayalcin, Cem; Onder, Harun
    Developing countries are facing mounting pressures to incorporate environmental concerns into their policy reform agendas. This paper finds that common environmental policies, such as levying taxes to reduce the excessive exploitation of natural assets, can be self-defeating when (i) institutions are weak and (ii) the general equilibrium effects of such policy actions are overlooked. This seemingly paradoxical result is driven by fundamental mechanisms in structural transformation frameworks, without the need for strong assumptions. It also carries a clear policy implication: environmental policies should be considered within a country’s broader development context, rather than in isolation.
  • Publication
    The Quality and Price of Africa’s Imports of Digital Goods
    (Washington, DC: World Bank, 2024-03-08) Bastos, Paulo; Castro, Lucio; Cruz, Marcio
    Imported digital goods are critical for productivity growth in low-income countries. Using detailed data on international trade flows and tariffs, this paper finds that African nations tend to import relatively low quality, low price digital goods. It also finds that digital goods in Africa are subject to relatively higher tariffs, along with other factors that contribute to their higher cost in the domestic market compared to other regions, especially in some low-income countries. The findings show that the African Continental Free Trade Area will do little to reduce this tariff burden, as most digital goods are sourced from higher income nonmembers. In contrast, unilateral tariff liberalization toward all countries would significantly increase the imports of digital goods in Africa.
  • Publication
    Reviewing Assessment Tools for Measuring Country Statistical Capacity
    (Washington, DC: World Bank, 2024-03-06) Dang, Hai-Anh H.; Pullinger,John James; Serajuddin,Umar; Stacy,Brian William
    Country statistical capacity is increasingly recognized as crucial for development, but no academic study exists that reviews the available assessment tools. This paper offers the first review study that fills this gap, paying particular attention to data and practical measurement challenges. It compares the World Bank’s recently developed Statistical Performance Indicators and Index with other widely used indexes, such as the Open Data Inventory index, the Global Data Barometer index, and other regional and self-assessment tools. The findings show that each index brings advantages in data sources, number of indicators, measurement focus, coverage of countries and time periods, and correlation with common development indexes. The Open Data Inventory index covers the most countries, the Global Data Barometer index collects data through its surveys, and the Statistical Performance Indicators and Index offer a broader framework for assessing statistical systems. The paper offers further thoughts on the potential mechanisms through which these tools can bring positive impacts on economic activities and some political economy concerns, as well as future directions for development.
  • Publication
    High Temperature and Learning Outcomes
    (Washington, DC: World Bank, 2024-03-05) Srivastava, Bhavya; Hirfrfot, Kibrom Tafere; Behrer, Arnold Patrick
    This paper uses data from 2003–19 on 2.47 million test takers of a national high stakes university entrance exam in Ethiopia to study the impacts of temperature on learning outcomes. It finds that high temperatures during the school year leading up to the exam reduce test scores, controlling for temperatures when the exam is taken. The results suggest that the scores of female students are less impacted by higher temperatures compared to their male counterparts. Additionally, the analysis finds that the scores of students from schools located in hotter regions are less impacted by higher temperatures compared to their counterparts from cooler regions. The evidence suggests that the adverse effects of temperature are driven by impacts from within-classroom temperatures, rather than from indirect impacts on agriculture.
Journal
Journal Volume
Journal Issue
Associated URLs
Associated content
Citations