Energy Transition and Industrial Policies: A Comparison Between the us and Europe

Augusto Ninni

L'industria, 2023, issue 3, 471-494

Abstract: The article analyzes two very recent programs of industrial policy presented by the United States (Inflation Reduction Act, ira) and the European Union (Net Zero Industry Act, nzia, which is still at the proposal stage) to achieve their objectives of energy transition from fossil fuels to renewable and zero-emission energy sources. The picture of the energy transition is, however, complicated by the existence of a clear supremacy of China in the field of renewable sources: for this reason the two programs tend to have some characteristics of the national industrial policies of the period preceding the globalization of the years 90. This situation of inferiority compared to China therefore forces the usa and the eu to develop their own programs for the necessary energy transition taking into account the criteria assumed by the energy trilemma, i.e. the cost of the various energy sources, their sustainability from an environmental point of view, their relevance from a strategic point of view. This leads the American ira in particular to use tools – such as the obligation of a certain quota of local content of raw materials and semi-finished products – which are not compatible with the rules of the game established by the wto.

Keywords: Energy Transition; Industrial Policy; Competitiveness; Strategic Factors; Local Content (search for similar items in EconPapers)
Date: 2023
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