Green Industrial Policies : When and How

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Hallegatte, Stephane
dc.contributor.author
Fay, Marianne
dc.contributor.author
Vogt-Schilb, Adrien
dc.date.accessioned
2014-02-04T20:33:44Z
dc.date.available
2014-02-04T20:33:44Z
dc.date.issued
2013-10
dc.description.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.
en
dc.identifier
http://documents.worldbank.org/curated/en/2013/10/18446583/green-industrial-policies-green-industrial-policies
dc.identifier.uri
http://hdl.handle.net/10986/16892
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 6677
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
ABATEMENT
dc.subject
ABATEMENT COSTS
dc.subject
ACCOUNTING
dc.subject
ACID
dc.subject
ACID RAIN
dc.subject
AIRCRAFT
dc.subject
ALLOCATION
dc.subject
ALLOWANCE
dc.subject
ASYMMETRIC INFORMATION
dc.subject
ATMOSPHERE
dc.subject
AUTOMOBILE
dc.subject
AUTOMOBILE INDUSTRY
dc.subject
BUS
dc.subject
BUS PURCHASE
dc.subject
CAPACITY
dc.subject
CAPITAL
dc.subject
CAPITAL MARKETS
dc.subject
CAR
dc.subject
CAR INDUSTRY
dc.subject
CAR TECHNOLOGIES
dc.subject
CARBON
dc.subject
CARBON CAPTURE
dc.subject
CARBON ECONOMY
dc.subject
CARBON EMISSIONS
dc.subject
CARBON LEAKAGE
dc.subject
CARBON MARKETS
dc.subject
CARBON PRICE
dc.subject
CARBON PRICES
dc.subject
CARBON TAX
dc.subject
CARBON TAXES
dc.subject
CARS
dc.subject
CLEAN ENERGY
dc.subject
CLIMATE
dc.subject
CLIMATE CHANGE
dc.subject
CLIMATE CHANGE LEVY
dc.subject
CLIMATE CHANGE MITIGATION
dc.subject
CLIMATE POLICIES
dc.subject
CLIMATE POLICY
dc.subject
CO2
dc.subject
COAL
dc.subject
COMPARATIVE ADVANTAGE
dc.subject
COMPARATIVE ADVANTAGES
dc.subject
COMPETITIVENESS
dc.subject
CONCENTRATES
dc.subject
CONSUMPTION
dc.subject
COST-BENEFIT
dc.subject
COST-BENEFIT ANALYSIS
dc.subject
CREDIT
dc.subject
CRITERIA
dc.subject
DECREASE IN EMISSIONS
dc.subject
DEMAND
dc.subject
DEVELOPMENT ECONOMICS
dc.subject
DEVELOPMENT POLICY
dc.subject
DIFFUSION
dc.subject
DISPLACED WORKERS
dc.subject
DISTRIBUTIONAL EFFECTS
dc.subject
DRIVERS
dc.subject
ECOLOGICAL ECONOMICS
dc.subject
ECONOMIC ANALYSIS
dc.subject
ECONOMIC BENEFITS
dc.subject
ECONOMIC GROWTH
dc.subject
ECONOMIC IMPACTS
dc.subject
ECONOMIC PERFORMANCE
dc.subject
ECONOMIC POLICIES
dc.subject
ECONOMIC RESEARCH
dc.subject
ECONOMIC SECTORS
dc.subject
ECONOMIC SITUATION
dc.subject
ECONOMIC STRUCTURE
dc.subject
ECONOMIC STRUCTURES
dc.subject
ECONOMIC SYSTEMS
dc.subject
ECONOMICS OF CLIMATE CHANGE
dc.subject
ECONOMIES OF SCALE
dc.subject
EFFICIENT VEHICLE
dc.subject
ELECTRIC CARS
dc.subject
ELECTRIC VEHICLES
dc.subject
ELECTRICITY
dc.subject
ELECTRICITY PRODUCTION
dc.subject
ELECTRICITY SUPPLY
dc.subject
EMISSION
dc.subject
EMISSION ABATEMENT
dc.subject
EMISSION REDUCTIONS
dc.subject
EMISSION TRADING
dc.subject
EMISSIONS
dc.subject
EMISSIONS LEAKAGE
dc.subject
ENERGY CONSUMPTION
dc.subject
ENERGY ECONOMICS
dc.subject
ENERGY EFFICIENCY
dc.subject
ENERGY INTENSITY
dc.subject
ENERGY POLICY
dc.subject
ENERGY PRICE
dc.subject
ENERGY PRICES
dc.subject
ENERGY PRODUCTION
dc.subject
ENERGY SUBSIDIES
dc.subject
ENVIRONMENTAL BENEFITS
dc.subject
ENVIRONMENTAL COSTS
dc.subject
ENVIRONMENTAL EXTERNALITIES
dc.subject
ENVIRONMENTAL EXTERNALITY
dc.subject
ENVIRONMENTAL POLICIES
dc.subject
ENVIRONMENTAL POLICY
dc.subject
ENVIRONMENTAL REGULATION
dc.subject
ENVIRONMENTAL REGULATIONS
dc.subject
ENVIRONMENTAL TAX
dc.subject
EQUITY
dc.subject
EXCHANGE RATES
dc.subject
EXPORTS
dc.subject
EXTERNALITIES
dc.subject
FINANCE
dc.subject
FINANCIAL ASSISTANCE
dc.subject
FIXED COSTS
dc.subject
FOREIGN COMPETITION
dc.subject
FOREIGN EXCHANGE
dc.subject
FOSSIL FUEL
dc.subject
FREE EMISSION
dc.subject
FUEL ECONOMY
dc.subject
FUEL EFFICIENCY
dc.subject
FUEL PRICES
dc.subject
FUEL SUBSIDIES
dc.subject
FUEL TAXES
dc.subject
FUEL TECHNOLOGIES
dc.subject
GAS
dc.subject
GASOLINE
dc.subject
GASOLINE PRICE
dc.subject
GDP
dc.subject
GHG
dc.subject
GLOBAL CARBON MARKET
dc.subject
GLOBAL EMISSION
dc.subject
GLOBAL EMISSIONS
dc.subject
GLOBAL WARMING
dc.subject
GNP
dc.subject
GOODS
dc.subject
GREENHOUSE
dc.subject
GREENHOUSE GASES
dc.subject
GROWTH POLICIES
dc.subject
GROWTH RATE
dc.subject
HIGH ENERGY
dc.subject
HIGH-SPEED TRAIN
dc.subject
HIGH-SPEED TRAINS
dc.subject
HYBRID CARS
dc.subject
IMPORTS
dc.subject
INCENTIVES
dc.subject
INCOME
dc.subject
INCOME LEVELS
dc.subject
INCREASING RETURNS
dc.subject
INDUSTRIALIZATION
dc.subject
INEFFICIENCY
dc.subject
INFLUENCE
dc.subject
INFRASTRUCTURE
dc.subject
INFRASTRUCTURE DEVELOPMENT
dc.subject
INNOVATION
dc.subject
INNOVATIONS
dc.subject
INPUTS
dc.subject
INTEREST RATES
dc.subject
INTERNATIONAL TRADE
dc.subject
INVESTMENT
dc.subject
INVESTMENTS
dc.subject
IRON
dc.subject
IRRADIATION
dc.subject
JOB CREATION
dc.subject
JOBS
dc.subject
LABOR
dc.subject
LABOR COSTS
dc.subject
LABOR MARKETS
dc.subject
LAW
dc.subject
LEAD
dc.subject
LESS
dc.subject
LOW-CARBON
dc.subject
LOWER PRICE
dc.subject
MACROECONOMICS
dc.subject
MARGINAL COST
dc.subject
MARKET
dc.subject
MARKET FAILURE
dc.subject
MARKET FAILURES
dc.subject
MARKETS
dc.subject
MASS TRANSIT
dc.subject
MODELS
dc.subject
MONETARY FUND
dc.subject
MONETARY TERMS
dc.subject
MONOPOLY
dc.subject
MONOPOLY RENTS
dc.subject
NATIONAL TRANSPORT
dc.subject
NEGATIVE IMPACT
dc.subject
NEGATIVE IMPACTS
dc.subject
NITROGEN
dc.subject
NITROGEN OXIDES
dc.subject
NO
dc.subject
OIL PRICE
dc.subject
OIL PRODUCTION
dc.subject
OLIGOPOLY
dc.subject
ORGANIZATIONS
dc.subject
PATENTS
dc.subject
PERFORMANCE STANDARDS
dc.subject
POLICIES
dc.subject
POLICY
dc.subject
POLICY MAKERS
dc.subject
POLITICAL ECONOMY
dc.subject
POLLUTION
dc.subject
PORTFOLIO
dc.subject
POWER GENERATION
dc.subject
POWER PLANTS
dc.subject
PP
dc.subject
PRICE
dc.subject
PRICE CHANGE
dc.subject
PRICE CHANGES
dc.subject
PRICE ELASTICITY
dc.subject
PRICES
dc.subject
PRICING
dc.subject
PRIVATE TRANSPORT
dc.subject
PRODUCTION COSTS
dc.subject
PRODUCTIVITY
dc.subject
PRODUCTIVITY GROWTH
dc.subject
PROPERTY RIGHTS
dc.subject
PUBLIC PARTICIPATION
dc.subject
REAL INTEREST RATES
dc.subject
REGULATORY CAPTURE
dc.subject
RELATIVE PRICES
dc.subject
RENEWABLE ENERGY
dc.subject
RENT
dc.subject
RENT SEEKING
dc.subject
REVENUES
dc.subject
RISK
dc.subject
RISK MANAGEMENT
dc.subject
RISKS
dc.subject
SAFETY
dc.subject
SAFETY NETS
dc.subject
SCALE EFFECTS
dc.subject
SIGNALS
dc.subject
SILICON
dc.subject
SOCIAL CAPITAL
dc.subject
SOCIAL COSTS
dc.subject
SOLAR POWER
dc.subject
STRUCTURAL CHANGE
dc.subject
SUBSIDY
dc.subject
SULFUR
dc.subject
SUPPLY
dc.subject
SUPPLY SIDE
dc.subject
TAXATION
dc.subject
TEMPERATURE
dc.subject
THEORY
dc.subject
TRADE
dc.subject
TRADE BARRIERS
dc.subject
TRADE LIBERALIZATION
dc.subject
TRADE POLICIES
dc.subject
TRADE POLICY
dc.subject
TRADE SYSTEM
dc.subject
TRAINING
dc.subject
TRANSFERS
dc.subject
TRANSPARENCY
dc.subject
TRANSPORT SYSTEM
dc.subject
TRANSPORT TECHNOLOGIES
dc.subject
TRANSPORTATION
dc.subject
TRENDS
dc.subject
TRUCKS
dc.subject
TRUE
dc.subject
UNEMPLOYMENT
dc.subject
URBAN TRANSPORT
dc.subject
VALUE
dc.subject
VEHICLES
dc.subject
WELFARE
dc.subject
WIND
dc.subject
WIND POWER
dc.subject
WTO
dc.title
Green Industrial Policies : When and How
en
okr.crosscuttingsolutionarea
Jobs
okr.crosscuttingsolutionarea
Climate Change
okr.date.disclosure
2013-10-01
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/2013/10/18446583/green-industrial-policies-green-industrial-policies
okr.globalpractice
Macroeconomics and Fiscal Management
okr.globalpractice
Transport and ICT
okr.globalpractice
Social Protection and Labor
okr.globalpractice
Environment and Natural Resources
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-6677
okr.identifier.externaldocumentum
000158349_20131028085557
okr.identifier.internaldocumentum
18446583
okr.identifier.report
WPS6677
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/10/28/000158349_20131028085557/Rendered/PDF/WPS6677.pdf
en
okr.topic
Environment :: Climate Change Mitigation and Green House Gases
okr.topic
Macroeconomics and Economic Growth :: Climate Change Economics
okr.topic
Social Protections and Labor :: Labor Policies
okr.topic
Economic Theory and Research
okr.topic
Transport Economics Policy and Planning
okr.topic
Transport
okr.unit
Office of the Chief Economist, Sustainable Development Network
okr.volume
1 of 1

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