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The green transition: public policy, finance, and the role of the State

The green transition: public policy, finance, and the role of the State
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Year:    2019

Author:    Lamperti, Francesco, Mazzucato, Mariana, Roventini, Andrea, Semieniuk, Gregor

Vierteljahrshefte zur Wirtschaftsforschung, Vol. 88 (2019), Iss. 2 : pp. 73–88

Abstract

Summary: While investments into renewable energy technologies are growing almost everywhere, the chances to meet ambitious emission and climate targets, as those envisaged in the Paris Agreement, are scant. To speed up the transition, policy makers need to design and implement a policy mix that could affect not just the quantity of green finance, but its quality as well. In this paper, we argue that a mission-oriented approach to the transition from an economy with high, to one with low greenhouse gas emissions, coupled with the state taking on the role of an entrepreneurial state, could provide an effective win-win strategy to address climate change concerns (embodied in emissions reduction and adaptation boosting) and build the basis for the next phase of growth and technological progress. In practice, this amounts to (i) abandoning the view that cost-internalization of environmental externalities would suffice to induce an effective transition (ii) developing a multi-level and cross-sectoral governance of the transition, with a clear direction in terms of the technological trajectory to favour, and (iii) designing a policy mix encompassing: fiscal instruments, targets and standards; public-private co-funding schemes; financial regulation; and disclosure practices. Social scientists should support such ambitious policy-design processes through adequate model development, where a combination of policies, and a directive role of the state, can be accommodated and examined in detail.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.3790/vjh.88.2.73

Vierteljahrshefte zur Wirtschaftsforschung, Vol. 88 (2019), Iss. 2 : pp. 73–88

Published online:    2019-04

AMS Subject Headings:    Duncker & Humblot, Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    16

Keywords:    H11 H70 Q48 Q54 Q55. market-shaping mission-oriented green finance renewable energies transition entrepreneurial state

Author Details

Lamperti, Francesco Email

Mazzucato, Mariana Email

Roventini, Andrea Email

Semieniuk, Gregor Email

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Section Title Page Action Price
Francesco Lamperti, Mariana Mazzucato, Andrea Roventini, and Gregor Semeniuk: The green transition: public policy, finance, and the role of the State 73
Summary 73
Zusammenfassung 73
1 Introduction 74
2 Financing green energy: who, when, what 75
3 Structural Shifts to Low Carbon Energy and a Systemic Policy Mix 80
4 Policy Insights 73
5 Conclusions 73
References 73