IDEAS home Printed from https://ideas.repec.org/a/kap/jincot/v24y2024i1d10.1007_s10842-024-00418-5.html
   My bibliography  Save this article

Green Industrial Policy in Europe: Past, Present, and Prospects

Author

Listed:
  • Reinhilde Veugelers

    (KULeuven
    PIIE
    Bruegel)

  • Simone Tagliapietra

    (Bruegel)

  • Cecilia Trasi

    (Bruegel)

Abstract

This paper critically examines the concept of green industrial policy in the context of the European Union (EU) under the European Green Deal—an initiative aimed at achieving climate neutrality by 2050. While the European Green Deal emphasizes climate targets, it did not fully address the economic and social sustainability dimensions of the green transition. The EU, considering the growing concerns over the potential consequences of the United States Inflation Reduction Act (IRA) and China’s assertiveness in the value chains of clean technologies, reassessed its green industrial policy approach in the Net Zero Industry Act proposal. Considering these developments, this study delves into the historical evolution of European industrial policy, evaluates the current proposals presented by the European Commission, and puts forth principles and recommendations for a green industrial policy that can effectively facilitate the green transition within the EU.

Suggested Citation

  • Reinhilde Veugelers & Simone Tagliapietra & Cecilia Trasi, 2024. "Green Industrial Policy in Europe: Past, Present, and Prospects," Journal of Industry, Competition and Trade, Springer, vol. 24(1), pages 1-22, December.
    • Handle: RePEc:kap:jincot:v:24:y:2024:i:1:d:10.1007_s10842-024-00418-5
    DOI: 10.1007/s10842-024-00418-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10842-024-00418-5
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10842-024-00418-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Philippe Aghion & Antoine Dechezleprêtre & David Hémous & Ralf Martin & John Van Reenen, 2016. "Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 1-51.
    2. Ralf Martin & Dennis Verhoeven, 2022. "Knowledge spillovers from clean and emerging technologies in the UK," CEP Discussion Papers dp1834, Centre for Economic Performance, LSE.
    3. Dani Rodrik, 2014. "Green industrial policy," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 30(3), pages 469-491.
    4. David Kleimann & Niclas Poitiers & André Sapir & Simone Tagliapietra & Nicolas Véron & Reinhilde Veugelers & Jeromin Zettelmeyer, 2023. "How Europe should answer the US Inflation Reduction Act," Bruegel Policy Brief node_8764, Bruegel.
    5. Philippe Aghion & Julian Boulanger, 2011. "Rethinking industrial policy," Bruegel Policy Brief 566, Bruegel.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Olimpia Fontana & Simone Vannuccini, 2024. "How to Institutionalise European Industrial Policy (for Strategic Autonomy and the Green Transition)," Journal of Industry, Competition and Trade, Springer, vol. 24(1), pages 1-30, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mealy, Penny & Teytelboym, Alexander, 2017. "Economic Complexity and the Green Economy," INET Oxford Working Papers 2018-03, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford, revised Feb 2019.
    2. Mealy, Penny & Teytelboym, Alexander, 2022. "Economic complexity and the green economy," Research Policy, Elsevier, vol. 51(8).
    3. Herman, Kyle S. & Xiang, Jun, 2019. "Induced innovation in clean energy technologies from foreign environmental policy stringency?," Technological Forecasting and Social Change, Elsevier, vol. 147(C), pages 198-207.
    4. Simone Tagliapietra & Reinhilde Veugelers, 2021. "Fostering the Industrial Component of the European Green Deal: Key Principles and Policy Options," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 56(6), pages 305-310, November.
    5. Paul Lehmann & Patrik Söderholm, 2018. "Can Technology-Specific Deployment Policies Be Cost-Effective? The Case of Renewable Energy Support Schemes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(2), pages 475-505, October.
    6. Oliver Picek & Enno Schröder, 2018. "Spillover effects of Germany's final demand on Southern Europe," The World Economy, Wiley Blackwell, vol. 41(8), pages 2216-2242, August.
    7. Delanote, Julie & Rückert, Désirée, 2022. "How to foster climate innovation in the European Union: Insights from the EIB Online Survey on Climate Innovation," EIB Working Papers 2022/02, European Investment Bank (EIB).
    8. Barbieri, Nicolò & Marzucchi, Alberto & Rizzo, Ugo, 2023. "Green technologies, interdependencies, and policy," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    9. Oscar Svensson & Jamil Khan & Roger Hildingsson, 2020. "Studying Industrial Decarbonisation: Developing an Interdisciplinary Understanding of the Conditions for Transformation in Energy-Intensive Natural Resource-Based Industry," Sustainability, MDPI, vol. 12(5), pages 1-21, March.
    10. Enno Schröder, 2015. "Eurozone Imbalances: Measuring the Contribution of Expenditure Switching and Expenditure Volumes 1990-2013," Working Papers 1508, New School for Social Research, Department of Economics, revised Sep 2015.
    11. Miria A. Pigato, 2019. "Fiscal Policies for Development and Climate Action," World Bank Publications - Books, The World Bank Group, number 31051.
    12. Matthijs Janssen, 2016. "What bangs for your bucks? Assessing the design and impact of transformative policy," Innovation Studies Utrecht (ISU) working paper series 16-05, Utrecht University, Department of Innovation Studies, revised Dec 2016.
    13. Bofinger, Peter & Geißendörfer, Lisa & Haas, Thomas & Mayer, Fabian, 2023. "Credit as an instrument for growth: A monetary explanation of the Chinese growth story," W.E.P. - Würzburg Economic Papers 107, University of Würzburg, Department of Economics.
    14. Åsa Löfgren & Lassi Ahlvik & Inge den Bijgaart & Jessica Coria & Jūratė Jaraitė & Filip Johnsson & Johan Rootzén, 2024. "Green industrial policy for climate action in the basic materials industry," Climatic Change, Springer, vol. 177(9), pages 1-12, September.
    15. Karl Aiginger, 2016. "New Dynamics for Europe: Reaping the Benefits of Socio-ecological Transition – Part I: Synthesis. WWWforEurope Deliverable No. 11," WIFO Studies, WIFO, number 58791, January.
    16. Nicolo Barbieri & Alberto Marzucchi & Ugo Rizzo, 2021. "Green technologies, complementarities, and policy," SPRU Working Paper Series 2021-08, SPRU - Science Policy Research Unit, University of Sussex Business School.
    17. Simone Tagliapietra & Reinhilde Veugelers, . "A green industrial policy for Europe," Blueprints, Bruegel, number 40380.
    18. Ferrannini, Andrea & Barbieri, Elisa & Biggeri, Mario & Di Tommaso, Marco R., 2021. "Industrial policy for sustainable human development in the post-Covid19 era," World Development, Elsevier, vol. 137(C).
    19. Janssen, Matthijs J., 2019. "What bangs for your buck? Assessing the design and impact of Dutch transformative policy," Technological Forecasting and Social Change, Elsevier, vol. 138(C), pages 78-94.
    20. Hu, Hui & Qi, Shaozhou & Chen, Yuanzhi, 2023. "Using green technology for a better tomorrow: How enterprises and government utilize the carbon trading system and incentive policies," China Economic Review, Elsevier, vol. 78(C).

    More about this item

    Keywords

    Green transition; Industrial policy; Innovation; EU Green Deal; IRA; NZIA;
    All these keywords.

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jincot:v:24:y:2024:i:1:d:10.1007_s10842-024-00418-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.