IDEAS home Printed from https://ideas.repec.org/p/wfo/wpaper/y2013i450.html
   My bibliography  Save this paper

The "Greening" of Industrial Policy, Headwinds and a Possible Symbiosis

Author

Listed:
  • Karl Aiginger

Abstract

The importance of manufacturing for industrialised countries has been reappraised, specifically in the wake of the financial crisis and of China's rise to world no. 1 in manufacturing. A "new industrial policy" should bolster reindustrialisation, different from the old selective and interventionist one, with proposals by academia, by the European Commission and many national policy makers in the USA, UK and France. It should be pro competitive, in line with societal needs, integrated with innovation and regional policy building on competitive strength and with "sustainability at centre stage". Environmental standards should no longer be considered as an obstacle to competitive manufacturing but could constitute a driver of green growth. Europe sets targets for increasing energy efficiency, increasing shares of renewable energy and cutting emission first for 2020 and then for 2050, demanding the reduction of greenhouse gases by 80 to 90 percent, based on new technologies and prices of carbon dioxide of 250 € per ton. Headwinds to this ambitious path come from low gas prices specifically in the USA, based on a new extraction technology and from the breaking down of the European emission trading. The question now raises whether Europe has to cope with low gas prices as to prevent carbon leakage, or whether Europe can stick to the goals of the envisaged integrated and systemic industrial policy as to raise energy efficiency as well as to reduce carbon emissions by new technologies. A "new industrial policy" would match the US cost advantage in energy by closing the technology deficit, improving skills and going for excellence in energy efficiency and clean technologies.

Suggested Citation

  • Karl Aiginger, 2013. "The "Greening" of Industrial Policy, Headwinds and a Possible Symbiosis," WIFO Working Papers 450, WIFO.
    • Handle: RePEc:wfo:wpaper:y:2013:i:450
    as

    Download full text from publisher

    File URL: https://www.wifo.ac.at/wwa/pubid/46710
    File Function: abstract
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    2. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801, October.
    3. Rodrik, Dani, 2004. "Industrial Policy for the Twenty-First Century," CEPR Discussion Papers 4767, C.E.P.R. Discussion Papers.
    4. Karl Aiginger & Susanne Sieber, 2006. "The Matrix Approach to Industrial Policy," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(5), pages 573-601.
    5. Karl Aiginger, 2011. "Why Growth Performance Differed across Countries in the Recent Crisis: the Impact of Pre-crisis Conditions," Review of Economics & Finance, Better Advances Press, Canada, vol. 1, pages 35-52, August.
    6. Karl Aiginger, 2012. "A Systemic Industrial Policy to Pave a New Growth Path for Europe," WIFO Working Papers 421, WIFO.
    7. Karl Aiginger & Stefan Ederer & Olaf Cramme & Roger Liddle & Renaud Thillaye, 2012. "Reconciling the Short and the Long Run: Governance Reforms to Solve the Crisis and Beyond. WWWforEurope Policy Brief No. 1," WIFO Studies, WIFO, number 46058.
    8. Philippe Aghion & Julian Boulanger & Elie Cohen, 2011. "Rethinking industrial policy," Policy Briefs 566, Bruegel.
    9. Jamie Sanderson & Sardar M. N. Islam, 2007. "Climate Change and Economic Development," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59012-0, December.
    10. AIGINGER Karl, 2011. "Why Performance Differed Across Countries In The Recent Crisis," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 55(2), pages 20-27.
    11. Karl Aiginger, 2006. "Competitiveness: From a Dangerous Obsession to a Welfare Creating Ability with Positive Externalities," Journal of Industry, Competition and Trade, Springer, vol. 6(2), pages 161-177, June.
    12. Karl Aiginger, 2007. "Industrial Policy: A Dying Breed or A Re-emerging Phoenix," Journal of Industry, Competition and Trade, Springer, vol. 7(3), pages 297-323, December.
    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. 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.
    2. N. N., 2017. "WIFO-Monatsberichte, Heft 12/2017," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(12), December.
    3. Michael Böheim, 2016. "Umweltpolitik als Kernelement einer systemischen Industriepolitik zur Förderung eines nachhaltigen Wirtschaftswachstums," WIFO Monatsberichte (monthly reports), WIFO, vol. 89(1), pages 39-46, January.
    4. Karl Aiginger, 2018. "Neue Anforderungen an Industrie- und Strukturpolitik," WIFO Working Papers 553, WIFO.
    5. Karl Aiginger, 2016. "This Can Still Be Europe's Century," WIFO Working Papers 522, WIFO.
    6. Karl Aiginger, 2017. "Wettbewerbsfähigkeit: vom "gefährlichen" Schlagwort zum Zukunftskompass. Die ökonomische Forschung und der Beitrag des WIFO," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(12), pages 947-953, 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. Karl Aiginger, 2013. "The "Greening" of Industrial Policy, Headwinds and a Possible Symbiosis. WWWforEurope Policy Paper No. 3," WIFO Studies, WIFO, number 46712.
    2. Karl Aiginger, 2014. "Industrial Policy for a Sustainable Growth Path," WIFO Working Papers 469, WIFO.
    3. Karl Aiginger, 2014. "Industrial Policy for a Sustainable Growth Path. WWWforEurope Policy Paper No. 13," WIFO Studies, WIFO, number 47261.
    4. Karl Aiginger, 2013. "A New Strategy for the European Periphery," WIFO Working Papers 443, WIFO.
    5. Karl Aiginger, 2012. "A Systemic Industrial Policy to Pave a New Growth Path for Europe," WIFO Working Papers 421, WIFO.
    6. Karl Aiginger, 2013. "A New Strategy for the European Periphery. WWWforEurope Policy Paper No. 1," WIFO Studies, WIFO, number 46673.
    7. Ádám Török & Gyöngyi Csuka & Bernadett Kovács & Anita Veres, 2013. "The "Resurrection" of Industrial Policy in the European Union and its Impact on Industrial Policy in the New Member Countries. WWWforEurope Working Paper No. 26," WIFO Studies, WIFO, number 46887.
    8. Karl Aiginger & Susanne Bärenthaler-Sieber & Johanna Vogel, 2013. "Competitiveness under New Perspectives. WWWforEurope Working Paper No. 44," WIFO Studies, WIFO, number 47019.
    9. Georg Licht & Bettina Peters & Christian Köhler & Franz Schwiebacher, 2014. "The Potential Contribution of Innovation Systems to Socio-Ecological Transition. WWWforEurope Deliverable No. 4," WIFO Studies, WIFO, number 47502.
    10. Karl Aiginger & Susanne Bärenthaler-Sieber & Johanna Vogel, 2015. "Competitiveness of EU versus USA. WWWforEurope Policy Paper No. 29," WIFO Studies, WIFO, number 58553.
    11. Karl Aiginger, 2013. "A Southern Europe strategy based on vision and industrial policy," EKONOMIAZ. Revista vasca de Economía, Gobierno Vasco / Eusko Jaurlaritza / Basque Government, vol. 82(01), pages 127-168.
    12. Christian Grabas & Alexander Nützenadel, 2013. "Industrial Policies in Europe in Historical Perspective. WWWforEurope Working Paper No. 15," WIFO Studies, WIFO, number 46867.
    13. repec:wsr:pbrief:y:2016:i:029 is not listed on IDEAS
    14. Michael Böheim, 2016. "Umweltpolitik als Kernelement einer systemischen Industriepolitik zur Förderung eines nachhaltigen Wirtschaftswachstums," WIFO Monatsberichte (monthly reports), WIFO, vol. 89(1), pages 39-46, January.
    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.
    16. Christian Ketels, 2015. "Competitiveness and Clusters: Implications for a New European Growth Strategy. WWWforEurope Working Paper No. 84," WIFO Studies, WIFO, number 57892.
    17. Karl Aiginger & Susanne Sieber, 2009. "Industriepolitik in Österreich: von selektiver Intervention zu einem systemischen Ansatz?," WIFO Working Papers 337, WIFO.
    18. David Castells-Quintana & Maria del Pilar Lopez-Uribe & Tom McDermott, 2015. "Climate change and the geographical and institutional drivers of economic development," GRI Working Papers 198, Grantham Research Institute on Climate Change and the Environment.
    19. Marco R. Di Tommaso & Stuart O. Schweitzer, 2013. "Industrial Policy in America," Books, Edward Elgar Publishing, number 13749.
    20. Stefan Ederer & Peter Reschenhofer, 2013. "Macroeconomic Imbalances in the EU. WWWforEurope Working Paper No. 42," WIFO Studies, WIFO, number 47017.
    21. Constantino Hevia & Norman V. Loayza & Claudia Meza-Cuadra, 2023. "Industrial Policies vs Public Goods under Asymmetric Information," Revista Economía, Fondo Editorial - Pontificia Universidad Católica del Perú, vol. 46(91), pages 39-52.

    More about this item

    Keywords

    New industrial policy; climate change; carbon leakage;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:wfo:wpaper:y:2013:i:450. 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: Florian Mayr (email available below). General contact details of provider: https://edirc.repec.org/data/wifooat.html .

    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.