Consideration of Different Policies for Empowering Green Industries

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 cceptability of price instruments. 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.

Keywords:

Green Industry , Sustainable development , Green industrial policies