Innovation, growth and the transition to net-zero emissions

Nicholas Stern and Anna Valero Sivropoulos-Valero

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: The climate crisis and the global economic impact of the Covid-19 crisis occur against a background of slowing growth and widening inequalities, which together imply an urgent need for a new environmentally sustainable and inclusive approach to growth. Investments in "clean" innovation and its diffusion are key to shaping this, accompanied by investments in complementary assets including sustainable infrastructure, and human, natural and social capital which will not only help achieve net-zero greenhouse gas emissions, but will also improve productivity, living standards and the prospects of individuals. In this article, we draw on the theoretical and empirical evidence on the opportunities, drivers and policies for innovation-led sustainable growth. We highlight the importance of a coordinated set of long-term policies and institutions that can enable and foster private sector investments in clean innovation and assets quickly and at scale. In doing so, we draw inspiration from Chris Freeman's work on the system-wide drivers of innovation, and his early vision of achieving environmental sustainability by reorienting growth.

Keywords: innovation; sustainable growth; net-zero transition; clean technology (search for similar items in EconPapers)
JEL-codes: O31 O33 O38 O55 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2021-06-01
New Economics Papers: this item is included in nep-agr, nep-ene, nep-env and nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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