Green industrial policy: trade and theory

Larry Karp and Megan Stevenson

No 6238, Policy Research Working Paper Series from The World Bank

Abstract: This paper studies the reality and the potential for green industrial policy. It provides a summary of the green industrial policies, broadly understood, for five countries. It then considers the relation between green industrial policies and trade disputes, emphasizing the Brazil-United States dispute involving ethanol and the broader United States-China dispute. The theory of public policy provides many lessons for green industrial policy. The authors highlight four of these lessons, involving the Green Paradox, the choice of quantities versus prices with endogenous investment, the coordination issues arising from emissions control, and the ability of green industrial policies to promote cooperation in reducing a global public bad like carbon emissions.

Keywords: Climate Change Economics; Environmental Economics&Policies; Climate Change Mitigation and Green House Gases; Energy Production and Transportation; Economic Theory&Research (search for similar items in EconPapers)
Date: 2012-10-01
New Economics Papers: this item is included in nep-agr, nep-ene, nep-env, nep-pke and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Working Paper: Green industrial policy: trade and theory (2012)
Working Paper: Green Industrial Policy: Trade and Theory (2012)
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