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Proactive regional policy: What a new policy to avoid socio-economic disruptions could look like

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  • Jens Suedekum

    (Duesseldorf Institute for Competition Economics (DICE))

Abstract

Proactive regional policies to aide local transformation processes are in the limelight these days. This paper firstly discusses the big paradigm shift in mainstream economics towards this newly gained prominence of place-based policies. Afterwards, the paper introduces the most voluminous case in Germany, the coal exit. My analysis suggests that the three involved lignite mining areas, which have received unusual amounts for structural support, must realize that they are role models. But a preliminary assessment suggests that the resources will mostly flow into rather conventional spending categories. There is little evidence for moonshot projects or innovative novel paths that only those regions could try out – given the unique circumstances they are in. This misses the chance to experiment how proactive regional policies could exploit their full potential.

Suggested Citation

  • Jens Suedekum, 2022. "Proactive regional policy: What a new policy to avoid socio-economic disruptions could look like," Working Papers 6, Forum New Economy.
    • Handle: RePEc:agz:wpaper:2206
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    File URL: https://newforum.org/wp-content/uploads/2022/12/FNE-WP06-2022.pdf
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    References listed on IDEAS

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    4. Benjamin Austin & Edward Glaeser & Lawrence Summers, 2018. "Jobs for the Heartland: Place-Based Policies in 21st-Century America," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 49(1 (Spring), pages 151-255.
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    7. repec:hal:pseose:hal-00812695 is not listed on IDEAS
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Tom Krebs, 2023. "Modern Climate Policy: Moving beyond the market-liberal paradigm," Working Papers 1, Forum New Economy.

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    More about this item

    Keywords

    proactive regional policy; automobile industry; coal- /lignite-exit; innovative policies;
    All these keywords.

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels

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